Domestic 25-day LPG cap stays, relief for commercial gas

Kolkata: The petroleum ministry has lifted all temporary emergency restrictions on commercial LPG distribution, bringing major relief to the hospitality and industrial sectors.

The move restores non-domestic packed LPG supplies to pre-crisis levels after energy flow stabilised through the Strait of Hormuz. However, the 25-day lock-in period between consecutive LPG bookings for domestic households will continue to remain in force to protect buffer stocks.The emergency restrictions were imposed under the Essential Commodities Act after severe global supply disruptions triggered by the West Asia conflict.

India imports more than 60% of its LPG, with nearly 90% of those imports historically routed through the Strait of Hormuz. Supply vulnerabilities intensified when regional hostilities involving the US and Iran disrupted movement through the waterway.Under the revised directives, all sectoral curbs on non-domestic packed LPG, including the 19-kg cylinders widely used by hotels, restaurants and eateries, have been removed.

Bulk LPG supplies for heavy commercial and industrial users, which were fully suspended at the start of the conflict, have also been restored to 50% of pre-crisis consumption levels.“Till now, we have not received any instruction from the Oil Marketing Companies (OMCs) on the modification of the domestic lock-in period,” said LPG dealers’ spokesperson Bijon Bihari Biswas. “However, given the rapid stabilisation of imports, we can expect the OMCs to revise these household restrictions as well.”“The regulation on commercial LPG being withdrawn will give relief to the hospitality industry to a large extent,” said Sudesh Poddar, president of the Hotel and Restaurant Association of Eastern India (HRAEI). “However, the industry is concerned about the price hike. A pre-war LPG cylinder was available at around Rs 1,600, but now it has more than doubled. We urge the Centre to reduce the price as well.”For several restaurateurs, the supply crunch forced lasting changes in operations and may reshape local commercial fuel usage.

“It is very good news, but at the same time, we have majorly switched to electric kitchen appliances for the time being,” said Nitin Kothari, owner of Kolkata restaurants Peter Cat, Mocambo and Peter Hu! “Now, electric operations make up almost 70% of our kitchens.”Other heritage restaurant brands said the easing of restrictions addresses only part of the problem. “This is really good for us,” said Kabir Azhar, director of the Aminia restaurant chain. “But the supply means little if the input costs remain unsustainable. Prices should also come down.”