Centre invokes Essential Commodities Act to secure domestic LPG supply amid global uncertainties

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Officials said the move is aimed at safeguarding domestic supply as geopolitical tensions in the Middle East raise the possibility of disruptions to international energy shipments.

KRC TIMES Assam Bureau

GUWAHATI : The Central government has invoked provisions of the Essential Commodities Act, 1955 to ensure uninterrupted availability of cooking gas across the country amid concerns over potential disruptions in global energy supplies.

Under the directive, oil refineries and petrochemical units nationwide have been instructed to maximise the production of liquefied petroleum gas (LPG) and channel key hydrocarbon streams-primarily propane and butane-towards the LPG supply pool.

Officials said the move is aimed at safeguarding domestic supply as geopolitical tensions in the Middle East raise the possibility of disruptions to international energy shipments.

India’s LPG consumption stood at around 31.3 million tonnes in the 2024-25 financial year, while domestic production accounted for only 12.8 million tonnes. The remaining demand was met through imports.

A large share of these imports-estimated at 85 to 90 per cent-comes from countries such as Saudi Arabia. Most shipments pass through the strategically vital Strait of Hormuz, a key maritime corridor that has recently faced heightened tensions following military strikes and retaliatory actions in the region.

To prevent potential shortages, the government has directed both public and private sector refiners to ensure that all propane and butane streams produced by their facilities are diverted exclusively for LPG production. Liquefied petroleum gas used for domestic cooking is primarily composed of a mixture of these two hydrocarbons.

The order further stipulates that LPG generated under the directive must be supplied only to the country’s three state-run oil marketing companies-Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited-for distribution to household consumers.

Refineries have also been prohibited from using propane and butane in petrochemical production during the enforcement period. Authorities said the LPG produced under the new instructions must be reserved strictly for domestic cooking purposes.

Any violation of the directive will invite penal action under the Essential Commodities Act.

Enacted in 1955, the Essential Commodities Act empowers the Union government to regulate the production, supply, distribution, pricing and trade of goods deemed essential for public welfare. The legislation also allows authorities to impose stock limits, control movement of commodities and mandate compulsory procurement during periods of supply shortages or price volatility.

While the law is administered by the Centre, its implementation is largely carried out by state governments, which are authorised to enforce stock limits and other regulatory measures to ensure adequate availability of essential commodities for consumers.

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