Govt invokes Essential Commodities Act to ensure uninterrupted LPG supply amid rising demand

10 March,2026 12:40 PM IST |  New Delhi  |  mid-day online correspondent

According to officials, the government has asked refineries and petrochemical plants to divert key hydrocarbon streams to the LPG production pool to increase availability of domestic cooking gas

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The Centre has invoked the Essential Commodities Act to ensure uninterrupted supply of domestic cooking gas across the country, directing refineries and petrochemical units to maximise the production of liquefied petroleum gas (LPG) amid rising demand and reports of shortages in some sectors, reported news agency IANS.

The move comes after hotels and restaurants in several regions reported shortages of commercial LPG cylinders, raising concerns over supply disruptions amid escalating tensions in West Asia and fears of a potential impact on global energy markets.

Refineries directed to maximise LPG production

According to officials, the government has asked refineries and petrochemical plants to divert key hydrocarbon streams to the LPG production pool to increase availability of domestic cooking gas, reported IANS.

Authorities said the decision was taken as a precautionary measure to stabilise LPG supplies and prevent disruptions in household consumption.

By invoking provisions under the Essential Commodities Act, the government can regulate production, supply and distribution of essential goods such as cooking gas to ensure equitable availability and prevent shortages.

Officials said the steps are intended to ensure that domestic LPG consumers continue to receive uninterrupted supply despite rising demand and global uncertainties, reported IANS.

Natural Gas Supply Regulation Order 2026 issued

In addition to the EC Act provisions, the government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate the production and sector-wise allocation of natural gas, including liquefied natural gas (LNG) and regasified LNG, reported IANS.

The order aims to ensure priority allocation of gas supplies to critical sectors that are essential for public welfare and economic activity.

Under the new framework, priority will be given to sectors such as domestic piped natural gas (PNG) supply, compressed natural gas (CNG) used in transport, LPG production, fuel for pipeline compressors and fertiliser manufacturing units, reported IANS.

Other sectors, including the tea industry and several key industrial consumers, have also been included in the priority allocation list.

GAIL tasked with implementing allocation framework

The government has assigned GAIL (India) Limited the responsibility of implementing the natural gas allocation system in coordination with the Petroleum Planning and Analysis Cell (PPAC, reported IANS.

The two agencies will oversee the distribution process and ensure that natural gas supplies are allocated in accordance with the sector-wise priority framework outlined under the new regulation.

Officials said the system will help maintain stable supplies to essential sectors while preventing disruptions during periods of global volatility in energy markets, reported IANS.

LPG booking interval extended to curb panic buying

Meanwhile, the government has increased the minimum waiting period for booking a domestic LPG refill from 21 days to 25 days in an effort to discourage hoarding and panic buying, reported IANS.

Officials said the decision was taken after authorities observed a surge in LPG demand of nearly 15 to 20 per cent in recent days as consumers rushed to book additional cylinders amid concerns over supply disruptions linked to the ongoing conflict involving Iran, reported IANS.

According to officials, the country currently has sufficient LPG supplies, and the extended booking interval is primarily intended to manage inventory and prevent unnecessary stockpiling.

An official noted that an average household typically consumes seven to eight LPG cylinders of 14.2 kilograms annually and generally does not require a refill in less than six weeks.

Fuel prices stable; crude storage sufficient

Officials also clarified that there is currently no plan to increase petrol and diesel prices despite rising global crude oil prices, reported IANS.

State-run oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, are expected to absorb the cost pressures for the time being, reported IANS.

The government is closely monitoring developments in global energy markets, officials said.

Meanwhile, Parliament was informed that India currently has sufficient crude oil and petroleum product storage capacity to meet national demand for approximately 74 days, which could help cushion the impact of supply disruptions in case geopolitical tensions escalate further.

(With inputs from IANS)

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