The Ministry of Petroleum and Natural Gas (MoPNG) on March 05, 2026, issued the direction to Prioritize Propane and Butane for Domestic LPG Supply.
The following has been stated:
• The Government has directed oil refining companies in India to maximize the use of Propane and Butane streams for the production of Liquefied Petroleum Gas (LPG) to ensure adequate supply for domestic consumers. Refiners are prohibited from diverting these streams for petrochemical or other downstream products.
• The LPG produced shall be supplied exclusively to the three public sector Oil Marketing Companies—Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—which shall ensure that it is marketed only to domestic LPG consumers.
• Any violation of the order will attract penalties under the Essential Commodities Act and related regulations. The order comes into force immediately and will remain effective until further directions from the Central Government.
[Notification no. - M-13017(11)/1/2026-LPG-PNG]
