Government invokes the Essential Commodities Act for LPG supply

Rising geopolitical tensions in West Asia have prompted India to strengthen safeguards for its fuel supply chain.

Consequently, the Union government has invoked the Essential Commodities Act to ensure the uninterrupted availability of domestic cooking gas and other critical fuels.

The decision comes amid concerns that the ongoing Iran–Israel conflict and wider Middle East instability could disrupt global energy supplies.

Therefore, authorities have directed refineries and petrochemical units to maximise production of Liquefied Petroleum Gas (LPG).

They must also divert key hydrocarbon streams to increase LPG availability for household consumption.

According to the government order, natural gas allocation will prioritise essential sectors. Domestic Piped Natural Gas (PNG) supply, Compressed Natural Gas (CNG) used for transportation, and LPG production will receive full allocation.

These sectors will obtain up to 100 per cent of their average gas consumption recorded over the past six months, subject to operational availability.

Gas supply will also be maintained for pipeline compressor fuel and other operational requirements necessary for the national gas network.

Meanwhile, fertiliser plants will receive up to 70 per cent of their average gas consumption during the previous six months. This measure ensures that fertiliser production continues while managing overall gas availability.

Similarly, tea industries, manufacturing units, and other industrial consumers connected to the national gas grid will receive around 80 per cent of their past six-month average gas supply.

In addition, city gas distribution companies have been instructed to maintain gas supply for industrial and commercial consumers at about 80 per cent of their earlier consumption levels. However, oil refining companies must absorb part of the supply disruption.

The government has asked them to reduce their gas allocation to nearly 65 per cent of their past six-month usage, wherever operationally feasible.

Authorities have also mandated strict reporting requirements. Every producer, importer, transporter, marketer, or distributor of natural gas, including LNG and regasified LNG, must provide detailed information on production, imports, stocks, allocation, supply, and consumption to the central government.

At the same time, the Ministry of Petroleum and Natural Gas has instructed oil refineries to increase LPG production and channel the additional output exclusively toward domestic use.

Officials emphasised that household cooking fuel remains a priority during global energy uncertainty.

Furthermore, the government recently introduced a 25-day interval between LPG cylinder bookings.

This step aims to discourage hoarding and prevent black-market activity while ensuring fair distribution of cooking gas across the country.

Image Credit: Jay.Jarosz, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Gas_cylinder_carrier_in_Hyderabad.jpg