The Union government on Tuesday invoked the Essential Commodities Act, 1955, issuing an order to safeguard the uninterrupted availability of domestic cooking gas amid supply concerns arising from the West Asia crisis following US and Israeli strikes on Iran.
Through the order, the Centre has directed oil refineries and petrochemical units to increase liquefied petroleum gas production to the maximum possible level and to redirect key hydrocarbon streams into the LPG pool.
The government, through its order, has accorded priority allocation status to certain sectors.
Under Priority Sector I, the government said that the supply of natural gas to sectors such as 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, shall be treated as priority allocation and shall be maintained subject to operational availability to 100 per cent of their past six-month average gas consumption.
Under Priority Sector II, the government directed that the supply of natural gas to fertiliser plants be ensured at 70 per cent of their past six-month average gas consumption, subject to operational availability.
Under Priority Sector III, gas marketing entities have been directed to ensure that gas supply to tea industries, manufacturing, and other industrial consumers is supplied through the national gas grid and maintained at 80 per cent of their past six-month average gas consumption, subject to operational availability.
Lastly, in Priority Sector IV, the government has ordered that all City Gas Distribution entities ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six-month average gas consumption, subject to operational availability.
India consumed 31.3 million tonnes of LPG during the financial year 2024-25.
Of this total, only 12.8 million tonnes were produced domestically.
Amid disruptions in the Strait of Hormuz, the Ministry of Petroleum and Natural Gas last week had ordered oil refineries to increase LPG production. It directed that the additional output be channelled specifically for domestic use.
