New Delhi: The government Thursday raised commercial LPG cylinder sales to levels prior to the Iran war following an improvement in supplies.Supplies of bulk LPG, which were suspended after the conflict broke out on February 28, have also been raised to 50% of pre-war levels, the oil ministry said, providing relief to commercial and industrial consumers.Prior to the war, India sourced about 54% of its LPG requirements from the Gulf. However, supply bottlenecks in the crucial Strait of Hormuz waterway forced the government to prioritise household consumption and impose curbs for commercial and industrial users. Sales to commercial customers were initially halted before being restored in phases to 70% of pre-war requirements.Household LPG refills declined 15% year-on-year during April-May, while commercial cylinder sales fell 11% and bulk LPG sales plunged 83%, according to oil ministry data.To partly offset the loss of imports, the government diverted additional C3/C4 streams towards LPG production. The move, however, reduced feedstock availability for petrochemical production besides affecting supplies of plastics, prompting a gradual rollback of the diversion. The government has now decided to scale it back further."Taking note of the improved indigenous LPG production and the projected availability of imported LPG cargoes, the government has decided to reduce the diversion of C3/C4 streams to the LPG pool," the oil ministry said.
Cylinder sales restored to pre-war levels & bulk supplies raised to 50%
The government has restored commercial LPG cylinder sales to pre-conflict levels after supplies improved, bringing relief to industrial and business users. The decision comes as import flows stabilised and domestic output strengthened, according to the oil ministry on Thursday. Bulk LPG supplies, which were earlier suspended after the disruption in late February, have also been raised to 50% of pre-conflict levels.
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