Amid rising pressure on global fuel supplies due to the ongoing conflict in West Asia, the Union Government has invoked the Essential Commodities Act (EC Act) to safeguard India’s domestic energy market and ensure the uninterrupted availability of cooking gas.
According to the Ministry of Petroleum and Natural Gas, the government has issued a control order directing refineries and petrochemical units to maximise the production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The move aims to maintain a steady supply of cooking gas across the country. The ministry said that invoking the EC Act establishes a clear priority framework for natural gas distribution in order to manage the current supply constraints.
Under the new mandate, domestic piped natural gas (PNG) for households and compressed natural gas (CNG) for vehicles will receive 100 per cent assured supply.
Other sectors, however, will face calibrated supply limits based on their average consumption over the past six months. Industrial and commercial natural gas consumers will receive 80 per cent of their six-month average supply, while fertiliser plants have been allocated 70 per cent of their previous supply levels as part of the government’s resource rebalancing strategy.
To facilitate the shift in supply priorities, the Petroleum Ministry confirmed a 35 per cent reduction in natural gas allocation to refineries and petrochemical plants. The measures come as India navigates supply challenges triggered by geopolitical tensions in West Asia.
India typically sources around 30 per cent of its natural gas through the Strait of Hormuz, making the route critical for the country’s energy imports. To offset the current shortfall, the ministry said India is actively procuring natural gas through alternative trade routes to maintain national energy security.
Meanwhile, the ministry has also constituted a committee to assess LPG requirements for restaurants, automobiles, and other sectors, and to explore ways to provide them with limited volumes.
The government has prioritised domestic LPG supply to households to ensure energy security for citizens amid volatility in global oil and energy markets caused by the West Asia crisis.
“In light of current geopolitical disruptions to fuel supply and constraints on LPG availability, the ministry has issued orders to oil refineries to increase LPG production and utilise the additional output for domestic consumption,” the Ministry of Petroleum and Natural Gas said in a statement posted on X.
To manage the current supply situation and prevent hoarding or black marketing, the ministry has also introduced a 25-day inter-booking period for LPG consumers.
The steps form part of the government’s broader strategy to stabilise the domestic energy market while global supply chains remain under pressure.