MoPNG Revised Order on Prioritization of LPG Production

Mar 11, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Ministry of Petroleum and Natural Gas (MoPNG) on March 9, 2026, issued a revised order under Section 3 of the Essential Commodities Act, 1955 read with the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999, to ensure adequate availability of Liquefied Petroleum Gas (LPG) for domestic consumption across the country.

The order directs all domestic/SEZ oil refining companies and petrochemical complexes in India to maximize LPG production by utilizing the entire C3 and C4 streams (including propane, butane, propylene, butenes, etc.) for the LPG pool and make it available 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). Refining companies have also been prohibited from diverting these streams for petrochemical products or other downstream derivatives.

Further, the public sector OMCs must ensure that the LPG procured is supplied only to domestic LPG consumers. Any violation of the order will attract action under the Essential Commodities Act, 1955 and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999. This revised order supersedes the Ministry’s earlier order dated March 5, 2026 and comes into force with immediate effect until further orders.

[Notification No. M-13017(11)/2026-LPG-PNG]


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