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India Invokes Essential Commodities Act to Secure LPG Supply Amid Shortage

The government has invoked the Essential Commodities Act to direct refineries to maximize LPG production and ensure uninterrupted domestic supply. A new Natural Gas Order prioritizes allocation to critical sectors like domestic PNG, CNG, and fertilizer plants. To manage inventory and prevent hoarding amid panic buying, the waiting period for a domestic LPG cylinder refill has been increased from 21 to 25 days. Officials state there is sufficient supply and that India has a 74-day strategic petroleum reserve to cushion against geopolitical disruptions.

Key Points: Govt Ensures LPG Supply via Essential Commodities Act

  • EC Act invoked for LPG supply
  • Natural Gas order regulates sector allocation
  • LPG cylinder booking wait increased to 25 days
  • 74-day strategic petroleum reserve in place
3 min read

Govt invokes Essential Commodities Act to ensure uninterrupted LPG supply

Government invokes Essential Commodities Act to boost LPG production, regulates gas allocation, and extends cylinder booking period to prevent hoarding.

"The step has been taken as there was a surge in demand of 15 to 20 per cent due to panic booking - Official"

New Delhi, March 10

As hotels and restaurants report commercial LPG shortage, the government has invoked the Essential Commodities Act to ensure the uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise the production of LPG.

The EC Act has been invoked to ensure divert key hydrocarbon streams to the LPG pool.

Authorities have also asked these facilities to divert key hydrocarbon streams to the LPG pool in order to boost availability and stabilise supplies for household consumption.

The government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate the production and sector-wise allocation of natural gas, including LNG and re-gasified LNG, ensuring priority supply to critical sectors.

Under the order, priority will be given to sectors such as domestic PNG supply, CNG for transport, LPG production, pipeline compressor fuel requirements, fertiliser plants, tea industries, and other key industrial consumers.

Moreover, the government has tasked GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), with implementing the natural gas supply regulation and ensuring adherence to the sector-wise allocation framework.

In the meantime, the government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 days to 25 days to prevent hoarding, as there were signs of panic buying taking place in the market amid the uncertainties due to the Iran war.

Officials said that there is a sufficient supply of LPG available in the country, and the booking time for LPG cylinders has been increased as a measure to manage inventory effectively.

The step has been taken as there was a surge in demand of 15 to 20 per cent due to panic booking, due to fears that supply would be disrupted because of the escalating war in the Middle East.

Average households consume 7-8 LPG cylinders of 14.2 kg in a year and should normally not need a refill in less than 6 weeks, an official pointed out.

A senior official said that petrol and diesel prices will not be increased for now. Oil marketing companies-- Indian Oil, Bharat Petroleum and Hindustan Petroleum-- are expected to absorb the current cost pressure for the time being. He said the government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices.

Meanwhile, the Parliament was informed on Monday that India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts.

- IANS

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Reader Comments

R
Rohit P
Good to see proactive measures. The 74-day fuel reserve is reassuring news amidst the global tensions. My only concern is for small restaurants and dhabas - they rely heavily on commercial cylinders. I hope the diversion of resources doesn't cripple their operations. The economy needs them running smoothly.
S
Sarah B
As an expat living here, I appreciate the government's transparency in this. The explanation about average household consumption (7-8 cylinders/year) puts things in perspective. The panic was unnecessary. Keeping petrol/diesel prices stable for now is a huge relief for commuters like me. 👍
A
Aman W
While the intent is good, increasing the waiting period from 21 to 25 days is a bit harsh for larger joint families. We go through cylinders much faster. The government should have a differential system based on family size or past consumption data. One size doesn't fit all.
K
Karthik V
Invoking the Essential Commodities Act shows they are serious. This is what the Act is for - to prevent hoarding and black marketing during crises. The priority to domestic PNG and CNG transport is also crucial. Let's hope the implementation by GAIL and PPAC is efficient and corruption-free. Jai Hind!
N
Nisha Z
My mother in the village was very worried. I'm glad I can now tell her the government has a plan and there's enough storage. The mention of priority for fertiliser plants and tea industries is important too - our farmers need support. A balanced approach.

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