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Environment, Health and Safety Central Ministry of Petroleum and Natural Gas Explosives Act, 1884

Prioritization of Liquefied Petroleum Gas Production and Supply to Public Sector Oil Marketing Companies

09-Mar-2026 | M- 130 1 7(1 1 ) I t |2026-LPG-PNG

This circular is regarding the order issued by the Central Government under the Essential Commodities Act, 1955 read with the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999 for ensuring adequate availability of Liquefied Petroleum Gas (LPG) for domestic consumers.

In compliance with the said order, the directions regarding prioritization of LPG production and supply were noted and disseminated among the concerned stakeholders. The circular highlights that all domestic oil refining companies and petrochemical complexes must maximize LPG production by utilizing C3 and C4 streams such as propane, butane, propylene, and butenes and make the same available to the public sector oil marketing companies, namely IOCL, BPCL, and HPCL. It also directs that these streams should not be diverted for petrochemical manufacturing or other downstream derivatives.

Further, the public sector oil marketing companies are required to ensure that the LPG procured under this order is supplied exclusively to domestic consumers.

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