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Govt invokes Essential Commodities Act, 1955 for stable gas supply amid LPG shortages. What is it? FAQs answered
The government set priority supply levels for sectors including domestic use, fertilizers, and industry to manage shortages caused by West Asia disruptions.
- On March 10, 2026, the Government of India invoked the Essential Commodities Act, 1955 to regulate availability and equitable distribution of petroleum and natural gas.
- Amid disruptions in West Asia energy routes, the government invoked the Essential Commodities Act to address supply concerns linked to the Strait of Hormuz and the Iran–Israel/US conflict.
- Acting through the gas allocation framework, the Centre requires all entities involved to ensure 100 percent supply for priority sector 1, 70 percent for fertiliser plants, and 80 percent for CGD consumers.
- The order directs Indian oil refineries to maximise LPG output and bars diversion of propane and butane streams to petrochemical production amid shortages in major cities such as Mumbai, Bengaluru and Chennai.
- The Essential Commodities Act, 1955 grants the Centre powers to regulate trade and impose stock limits under Sections 3 and 5, with a 2020 amendment limiting agricultural intervention.
16 Articles
16 Articles
Essential Commodities Act invoked by India amid LPG shortage. What does it mean?
Restaurants, hotels and commercial kitchens in cities such as Delhi, Mumbai and Bengaluru have reported difficulty getting commercial LPG cylinders, forcing some establishments to scale down operations or temporarily shut. The situation has pushed the government to invoke the Essential Commodities Act
What is Essential Commodities Act that India invoked amid Iran war
Essential Commodities Act has been invoked by the government due to the Iran war disrupting global gas supply. Natural gas and LNG are being diverted to priority areas. This has impacted daily life across India, leading to crematorium closures in Pune and increased LPG prices for households.
Centre orders refineries to regulate natural gas supply amid West Asia crisis
The Union government on Monday invoked the Essential Commodities Act, directing refineries to regulate the production, supply and distribution of natural gas in the country following disruptions due to the West Asia conflict.In its order, the Ministry of Petroleum and Natural Gas stated that the conflict has affected liquefied natural gas shipments through the Strait of Hormuz.The narrow waterbody connects the Gulf to the Arabian Sea. About 20% …
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