The central government has slashed the price of commercial LPG cylinders by Rs 183 after a series of hikes due to the Iran war and the wider West Asia crisis. In Delhi, a commercial LPG cylinder will now cost Rs 2,930 as opposed to Rs 3,113 previously.
The development comes days after such as restaurants, hotels and other businesses to pre- war levels, and did away with sector-exclusive curbs imposed during the West Asia crisis.
In a statement, the Petroleum Ministry said that the restrictions on commercial supply were lifted after an improvement in domestic production and the expected arrival of imported LPG cargoes. Furthermore, the bulk LPG supply, which was paused at the start of the conflict, had been partially resumed at 50 per cent of pre-war consumption levels.
At the peak of the West Asia crisis, LPG supplies were massively hit and prices were also increased several times due to high demand. Supplies were subsequently restored in phases to nearly 70 per cent of normal consumption levels, although many sectors continued to face restrictions of up to 50 per cent of their usual allocations as authorities sought to preserve fuel stocks amid import availability concerns.
Refineries were directed to produce more LPG by diverting streams they would otherwise use for petrochemical production.
“In a major relief to industrial and commercial LPG consumers, the government has removed all sectoral restrictions on the supply of non-domestic packed LPG and restored supplies to the levels prevailing prior to the West Asia crisis,” the Petroleum Ministry statement said.
During the crisis, the government had invoked powers under the Essential Commodities Act to direct that C3 and C4 hydrocarbon streams be used exclusively for LPG production, diverting feedstock away from petrochemical and other industrial uses.
With supply conditions being restored now, authorities have decided to cut down the diversion of C3-C4 streams to the LPG pool and restore allocations to petrochemical and other downstream industries, while making sure domestic LPG production stays above 40,000 tonnes per day.