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India Invokes Essential Commodities Act to Safeguard LPG Supplies Amid West Asia Conflict

New Delhi, March 10: Narendra Modi on Tuesday held a high-level meeting with Hardeep Singh Puri and S. Jaishankar to review the country’s liquefied petroleum gas (LPG) supply situation and assess potential disruptions arising from the ongoing conflict involving Iran.

Amid rising concerns over global energy supply chains due to escalating tensions in West Asia, the Union government has invoked provisions of the Essential Commodities Act to protect the domestic fuel market from possible shortages.

Measures to Boost LPG Production

The Ministry of Petroleum and Natural Gas announced that a control order has been issued directing refineries and petrochemical units to increase LPG production and divert key hydrocarbon streams into the national LPG pool. The move is aimed at ensuring uninterrupted availability of cooking gas across the country.

According to the ministry, invoking the Act has also formalised a priority framework for natural gas allocation in order to address current supply constraints.

Under the revised guidelines, domestic piped natural gas (PNG) and compressed natural gas (CNG) used in the transport sector will receive 100 per cent assured supply, while other sectors will be subject to regulated consumption limits based on their average usage over the past six months.

Oil Companies Step Up Supply Measures

India’s major oil marketing companies—Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—said they have intensified efforts to increase LPG production and prioritise supplies to domestic consumers.

In a joint statement released on Tuesday, the companies confirmed that the government has taken proactive steps to expand LPG output and maintain adequate reserves for household consumers as well as critical institutions.

“In light of the current geopolitical disruptions to fuel supply and constraints on LPG availability, the Ministry has taken measures to increase production and secure sufficient stocks for domestic customers,” the statement said.

The companies added that, while ensuring uninterrupted supply to households, LPG will also be provided as required to essential non-domestic sectors, including hospitals and educational institutions.

Committee to Prioritise Supply

For other non-domestic sectors, the government has constituted a three-member committee comprising Executive Directors of oil marketing companies to review requests and determine the prioritisation of LPG supply.

Officials said the measures are intended to maintain stability in India’s domestic fuel market and prevent supply disruptions as geopolitical tensions continue to affect global energy markets.

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