India lifts commercial LPG curbs
Analysis based on 64 articles · First reported Jun 25, 2026 · Last updated Jul 06, 2026
The lifting of LPG supply restrictions by India is expected to provide significant relief to industrial and commercial consumers, such as hotels and restaurants, by reducing their operational costs and ensuring stable fuel availability. This move also benefits petrochemical companies like Reliance Industries as the diversion of C3-C4 streams for LPG production is reduced, allowing them to resume lucrative petrochemical production.
The government of India has lifted all sectoral restrictions on the supply of non-domestic packed LPG, restoring supplies to pre-crisis levels. This decision, announced by the India — Ministry of Petroleum and Natural Gas, comes as a major relief to industrial and commercial consumers, including hotels and restaurants. Additionally, the supply of bulk LPG, which was suspended during the West Asia crisis, has been relaxed to 50% of pre-crisis consumption levels. The improved indigenous LPG production and the projected availability of imported LPG cargoes, partly due to the United States-Iran peace agreement and the opening of the Strait of Hormuz, contributed to this decision. During the crisis, the government had invoked the Essential Commodities Act, 1955 to divert C3-C4 hydrocarbon streams exclusively for LPG production, impacting petrochemical industries like Reliance Industries. Now, the government has decided to reduce this diversion, ensuring domestic LPG availability remains unaffected while allowing more material for petrochemical and other critical sectors. Petroleum industrys are directed to maintain comprehensive data for efficient planning. The government also remains committed to expanding Natural gas connectivity, with eligible LPG consumers transitioning to PNG in coordination with City Gas Distribution Company entities.
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