India lifts commercial LPG restrictions as West Asia supply improves

The Indian government removed all limits on non‑domestic packed liquefied petroleum gas (LPG) and restored bulk supplies to 50% of pre‑crisis levels, returning the market to the situation before the West Asia war disrupted shipments through the Strait of Hormuz. The decision follows recent improvements in LPG availability linked to U.S.–Iran negotiations that reopened the strait, easing the supply squeeze that had driven up prices for commercial cylinders used by restaurants, hotels and other businesses.

The Ministry of Petroleum and Natural Gas said the move will not affect domestic LPG availability and will keep indigenous production at a minimum of 40,000 metric tons per day. Oil marketers must keep detailed records of commercial consumers, and the government will continue expanding piped natural gas connections. The policy shift complements a near‑$4 billion plan to expand coal gasification and other measures aimed at stabilising India's energy supply amid the geopolitical disruption.