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Environment, Health and Safety Central Ministry of Petroleum and Natural Gas Petroleum Act, 1934

Directive on Prioritisation of C3 & C4 Streams for Domestic LPG Production under Petroleum Products Order, 1999

01-Apr-2026 | M-13017(11)/1/2026-LPG-PNG (E.55637)

The Central Government, under the powers of the Essential Commodities Act, 1955 and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, has issued a directive mandating prioritisation of Liquefied Petroleum Gas (LPG) production in the national interest. The order requires all domestic LPG refining companies and petrochemical complexes in India to maximize the utilization of C3 and C4 hydrocarbon streams (including propane, butane, propylene, and butenes) exclusively for LPG production. These streams must be supplied to Public Sector Oil Marketing Companies (IOCL, BPCL, and HPCL) for distribution as domestic LPG, ensuring uninterrupted household fuel supply across the country. Refining companies are prohibited from diverting, processing, or using these stream for alternative petrochemical applications, except for limited critical requirements as determined by the Centre for High Technology under the Ministry of Petroleum and Natural Gas. Public Sector Oil Marketing Companies are required to ensure that the LPG procured is supplied solely for domestic consumption. Non-compliance with the directive will attract penalties under the Essential Commodities Act, 1955 and other applicable laws.

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