India invokes Essential Commodities Act to ensure LPG supply as West Asia crisis worsens

Under the order, the supply of natural gas to several sectors will be treated as a priority allocation and maintained-subject to operational availability-at 100% of their average consumption over the past six months

• Government invokes Essential Commodities Act to ensure LPG supply
• Oil refineries directed to boost LPG production for domestic use
• 25-day inter-booking period introduced to prevent LPG hoarding

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As the West Asia conflict continues to strain global fuel supplies, the Union government on Tuesday invoked the Essential Commodities Act to ensure an uninterrupted supply of domestic cooking gas. The move directs refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

Under the order, the supply of natural gas to several sectors will be treated as a priority allocation and maintained-subject to operational availability-at 100% of their average consumption over the past six months. These sectors include domestic piped natural gas (PNG), compressed natural gas (CNG) for transport, LPG production including shrinkage requirements, and pipeline compressor fuel along with other essential pipeline operational needs.

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The order further states that natural gas supply to fertiliser plants should be maintained at 70% of their average consumption over the past six months, subject to operational availability. Gas marketing entities have also been directed to maintain supplies to tea industries, manufacturing units and other industrial consumers connected to the national gas grid at 80% of their past six-month average consumption.

City Gas Distribution (CGD) entities have similarly been instructed to ensure that industrial and commercial consumers supplied through their networks receive 80% of their average gas consumption over the past six months, subject to operational availability.

To manage the impact of LNG supply disruptions, oil refining companies have been asked to absorb part of the strain by reducing gas allocation to refineries to around 65% of their past six-month consumption, depending on operational feasibility.

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/OqtsDwb13s

— ANI (@ANI) March 10, 2026

The government has also directed all producers, importers, transporters, marketers and distributors of natural gas-including LNG and regasified LNG-to furnish details related to production, imports, stocks, allocation, supply and consumption to the central government or authorised officials.

Meanwhile, the Ministry of Petroleum and Natural Gas has ordered oil refineries to increase LPG production and ensure that the additional output is directed specifically toward domestic consumption. The government said the decision aims to safeguard household energy security amid ongoing uncertainty in global oil and energy markets due to the West Asia crisis.

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, the ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said in a statement on X.

To manage the supply situation and prevent hoarding or black marketing, the ministry has also introduced a 25-day inter-booking period for LPG consumers.

(With inputs from ANI)