New Delhi, Mar 10: Amid mounting concerns over an emerging LPG shortage, the Union government on Tuesday invoked provisions of the Essential Commodities Act, 1955, to regulate the supply and distribution of natural gas and petroleum products across the country.

The move comes as hotel and hospitality associations across India raise alarms over tightening LPG availability. In response, the government issued a notification empowering authorities to regulate the availability, supply, and equitable distribution of petroleum products and natural gas.

Under the directive, refineries and petrochemical units have been instructed to maximise liquefied petroleum gas (LPG) production and divert critical hydrocarbon streams into the LPG supply pool in order to stabilise availability.

The notification states that the decision follows disruptions in global energy shipments. According to the government, the ongoing conflict in the Middle East has interrupted liquefied natural gas (LNG) shipments through the Strait of Hormuz, with some suppliers invoking the force majeure clause. This has forced a diversion of natural gas supplies toward priority sectors.

Petroleum and petroleum products fall under Entry 5 of the Schedule of the Essential Commodities Act, which empowers the central government under Section 3 to regulate their supply, distribution, and trade whenever necessary to maintain adequate availability or ensure fair distribution.

Under the new order, certain sectors will receive priority allocation of natural gas, maintaining supplies at 100% of their average consumption over the past six months, subject to operational availability. These sectors include:

• Domestic Piped Natural Gas (PNG) supply

• Compressed Natural Gas (CNG) for transport

• LPG production, including shrinkage requirements

• Pipeline compressor fuel and other essential operational needs of the gas grid

Fertiliser plants will receive 70% of their average gas consumption over the past six months, depending on operational availability.

Meanwhile, gas marketing entities have been directed to maintain 80% of the past six-month average gas consumption for tea industries, manufacturing units, and other industrial consumers connected to the national gas grid.

City Gas Distribution companies must also ensure that industrial and commercial consumers supplied through their networks continue to receive around 80% of their average past six-month gas consumption, subject to availability.

To offset the supply disruption, oil refining companies have been instructed to reduce their own gas usage. Gas allocation to refineries will be cut to approximately 65% of their average consumption over the past six months, wherever operationally feasible.

The government has also ordered all producers, importers, transporters, marketers, and distributors of natural gas — including LNG and regasified LNG — to regularly submit data on production, imports, stock levels, allocation, supply, and consumption to the central government or authorised officials.

The emergency regulatory step aims to stabilise gas availability and prioritise essential sectors as global supply chains face uncertainty due to escalating geopolitical tensions.

New Delhi, Mar 10: Amid mounting concerns over an emerging LPG shortage, the Union government on Tuesday invoked provisions of the Essential Commodities Act, 1955, to regulate the supply and distribution of natural gas and petroleum products across the country.

The move comes as hotel and hospitality associations across India raise alarms over tightening LPG availability. In response, the government issued a notification empowering authorities to regulate the availability, supply, and equitable distribution of petroleum products and natural gas.

Under the directive, refineries and petrochemical units have been instructed to maximise liquefied petroleum gas (LPG) production and divert critical hydrocarbon streams into the LPG supply pool in order to stabilise availability.

The notification states that the decision follows disruptions in global energy shipments. According to the government, the ongoing conflict in the Middle East has interrupted liquefied natural gas (LNG) shipments through the Strait of Hormuz, with some suppliers invoking the force majeure clause. This has forced a diversion of natural gas supplies toward priority sectors.

Petroleum and petroleum products fall under Entry 5 of the Schedule of the Essential Commodities Act, which empowers the central government under Section 3 to regulate their supply, distribution, and trade whenever necessary to maintain adequate availability or ensure fair distribution.

Under the new order, certain sectors will receive priority allocation of natural gas, maintaining supplies at 100% of their average consumption over the past six months, subject to operational availability. These sectors include:

• Domestic Piped Natural Gas (PNG) supply

• Compressed Natural Gas (CNG) for transport

• LPG production, including shrinkage requirements

• Pipeline compressor fuel and other essential operational needs of the gas grid

Fertiliser plants will receive 70% of their average gas consumption over the past six months, depending on operational availability.

Meanwhile, gas marketing entities have been directed to maintain 80% of the past six-month average gas consumption for tea industries, manufacturing units, and other industrial consumers connected to the national gas grid.

City Gas Distribution companies must also ensure that industrial and commercial consumers supplied through their networks continue to receive around 80% of their average past six-month gas consumption, subject to availability.

To offset the supply disruption, oil refining companies have been instructed to reduce their own gas usage. Gas allocation to refineries will be cut to approximately 65% of their average consumption over the past six months, wherever operationally feasible.

The government has also ordered all producers, importers, transporters, marketers, and distributors of natural gas — including LNG and regasified LNG — to regularly submit data on production, imports, stock levels, allocation, supply, and consumption to the central government or authorised officials.

The emergency regulatory step aims to stabilise gas availability and prioritise essential sectors as global supply chains face uncertainty due to escalating geopolitical tensions.