Major news regarding LPG: Government shares good news; lifts restrictions on commercial LPG supply..

LPG Cylinder: Following a peace agreement between Iran and the US, the movement of ships through the Strait of Hormuz has resumed. With the reopening of the Strait of Hormuz, the Indian government has lifted restrictions on the supply of non-domestic packed (commercial) LPG, restoring the situation regarding commercial cylinders to pre-conflict levels. Additionally, restrictions on bulk LPG supplies have been eased.

This government decision brings significant relief to commercial and industrial customers, who had been facing various restrictions for months due to supply disruptions caused by the West Asia crisis.

Aiming to strike a balance between industrial demand and energy security, the Ministry of Petroleum and Natural Gas announced the removal of all sector-wise restrictions on non-domestic packed LPG.

**Easing of Bulk LPG Supply Restrictions (Up to 50%)**
Furthermore, while bulk LPG supplies were halted at the onset of the crisis, they have now been eased to allow for up to 50% of pre-crisis consumption levels, providing substantial relief to commercial and industrial consumers.

India's gas imports had been impacted by the Middle East conflict. Consequently, the government had invoked provisions under the Essential Commodities Act, mandating that C3-C4 hydrocarbon streams be used exclusively for LPG production—thereby diverting supplies away from petrochemical and other downstream industries to prioritize LPG.

With the improvement in the supply situation, the government has now decided to reduce the diversion of these feedstocks to the LPG pool, thereby increasing their availability for the petrochemical sector and other essential industries.

The Ministry stated, "In view of improved domestic LPG production and the projected availability of imported LPG cargoes, the government has also decided to reduce the diversion of C3/C4 streams to the LPG pool."

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