Govt invokes Essential Commodities Act to ensure LPG supply, orders refineries to divert key streams

NEW DELHI: As the West Asia conflict continues to put pressure on fuel supplies, the Union government on Tuesday invoked the Essential Commodities Act (EC Act) to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to 100 per cent of their average past six-month average gas consumption. These sectors include — domestic piped natural gas supply; compressed natural gas for transport; LPG production including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.

Government of India invokes the Essential Commodities Act, 1955, to regulate the availability, supply and equitable distribution of petroleum and petroleum products and natural gas pic.twitter.com/DPSlCXqix9

— DeshGujarat (@DeshGujarat) March 10, 2026

The order further states that supply of natural gas to the fertilizer plants shall ensure 70 per cent of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at 80 per cent of their past six-month average gas consumption subject to operational availability.

All city gas distribution entities have been asked to ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six-month average gas consumption subject to operational availability. The oil refining companies have been ordered to absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately 65 per cent of the past six-month gas consumption, subject to operational feasibility.

Every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG has been asked to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it.

Meanwhile, the Ministry of Petroleum and Natural Gas issued orders to oil refineries to increase Liquefied Petroleum Gas (LPG) production and directed that such additional output be channelled specifically for domestic use. The government prioritised domestic LPG supply to households to ensure energy security for citizens amidst the ongoing uncertainty in the global oil and energy market due to West Asia crisis

“In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the Ministry of Petroleum and Natural Gas announced on X.

To manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing. (ANI)