NewKerala.com

India Invokes Essential Commodities Act to Secure LPG Supply Amid Crisis

The Union Government has invoked the Essential Commodities Act to ensure an uninterrupted supply of domestic cooking gas amidst pressure from the West Asia conflict. It has directed refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the domestic LPG pool. The order establishes priority allocations for domestic piped natural gas, CNG transport, and LPG production, while setting specific consumption percentages for fertilizer plants and other industries. The Petroleum Ministry has also introduced a 25-day inter-booking period for consumers to prevent hoarding and black marketing.

Key Points: Govt Ensures LPG Supply, Directs Refineries Amid Fuel Crisis

  • Govt invokes Essential Commodities Act
  • Refineries ordered to maximise LPG output
  • Priority allocation for domestic PNG and CNG
  • 25-day inter-booking period to prevent hoarding
3 min read

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

India invokes Essential Commodities Act, orders refineries to boost LPG production and prioritise domestic supply due to West Asia conflict disruptions.

"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 - Ministry of Petroleum and Natural Gas"

New Delhi, March 10

As the West Asia Conflict continues to put pressure on fuel supplies, the Union Government on Tuesday invoked the Essential Commodities Act to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas 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 hundred 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.

The order further states that supply of natural gas to the fertilizer plants shall ensure seventy 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 eighty 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 eighty 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 sixty-five 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

Share this article:

Reader Comments

P
Priyanka N
This is concerning. My husband runs a small manufacturing unit that relies on CNG. If supply to industries is cut to 80%, it will impact production and jobs. The government must balance domestic needs with keeping the economy running. 🤔
S
Sarah B
As an expat living in Delhi, it's impressive to see such decisive action. The global energy market is volatile, and securing essentials for citizens should be the top priority. The data collection order from all entities is also smart for planning.
A
Aman W
Uff, another crisis due to West Asia. When will we become truly self-reliant in energy? We need to fast-track our own gas exploration and renewable projects. Relying on imports makes us vulnerable every time there's tension abroad.
M
Meera T
Thankful that domestic LPG is being protected. For millions of homes, especially in rural areas, it's not just about convenience but health—moving back to firewood causes so many respiratory issues. Hope the supply chain holds strong. 🙏
V
Vikram M
The order seems comprehensive, covering PNG, CNG, fertilizers, and tea industries. The 100% allocation to domestic PNG is a relief for apartment dwellers. However, implementation is key. Hope the authorities monitor it closely on the ground.
K
Karthik V

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50