The Centre has lifted all sector-wise restrictions on the supply of commercial LPG cylinders, restoring 100% allocation to states as domestic availability improves and fresh import consignments are expected to reach the country.

The decision, announced by the Ministry of Petroleum and Natural Gas on Wednesday, also relaxes restrictions on bulk LPG supplies to industrial consumers. Bulk allocations, which had been curtailed during the recent supply crunch, have now been restored to 50% of pre-crisis consumption levels.

Officials said the move follows an improvement in domestic LPG production and the anticipated arrival of imported cargoes, which have helped stabilize supply conditions across the country.

According to the ministry, commercial LPG supplies had been reduced during the gas shortage to ensure uninterrupted availability of domestic cooking gas for households. With the supply situation showing signs of recovery, those restrictions have now been withdrawn.

Industrial consumers are also expected to benefit from the latest decision. The ministry said bulk LPG supplies, which were suspended during the peak of the crisis, have been partially resumed, providing relief to industries that depend on LPG as a key fuel source.

The government has additionally decided to reduce the diversion of C3 and C4 hydrocarbon streams, enabling petrochemical manufacturers and downstream industries to regain their earlier allocation levels. However, officials clarified that the relaxation will remain subject to the condition that domestic LPG availability is not affected.

The ministry said India will continue to maintain daily domestic LPG production of at least 40,000 tonnes while implementing the revised supply policy.

The easing of restrictions comes after a period of supply disruption linked to geopolitical tensions in West Asia. The conflict involving Israel, the United States and Iran had disrupted global energy markets, affecting crude oil and LPG supply chains and prompting precautionary measures in India to safeguard household fuel availability.

During the supply crisis, commercial LPG distribution was reduced across several sectors, while priority was given to domestic consumers. Hotels, restaurants and other commercial establishments experienced lower allocations as the government sought to maintain uninterrupted household cylinder supplies.

The shortage also contributed to a sharp rise in commercial LPG prices. In Delhi, a commercial LPG cylinder was reportedly priced at ₹1,740.50 before successive price revisions pushed the rate to ₹3,113.50, an increase of ₹1,373 during the period of supply constraints.

Officials said the latest restoration reflects improving supply conditions rather than a change in the government's priority towards domestic consumers.

The ministry explained that the term "pre-crisis level" refers to consumption patterns before the recent disruption in LPG supplies. Under the revised arrangement, bulk industrial consumers will receive half of their earlier allocation, while commercial cylinder supplies have been fully restored.

India remains heavily dependent on LPG imports, with a significant share of shipments arriving through maritime routes in the Middle East. Any disruption along these routes can affect domestic availability, making supply management a key priority during periods of international instability.

Despite recent geopolitical developments, the government has maintained that there is no shortage of LPG or petroleum products for domestic consumers and has urged the public not to pay attention to rumours regarding fuel availability.

Officials said the situation will continue to be monitored closely, and further decisions on industrial allocations will depend on domestic production levels, import arrivals and overall market conditions.