Guwahati: The Central government has invoked provisions of the Essential Commodities Act to ensure an uninterrupted supply of domestic cooking gas amid concerns over possible disruptions in imports.
Under the directive, oil refineries and petrochemical units across the country have been instructed to maximise the production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams, including propane and butane, into the LPG pool.
The move comes against the backdrop of the ongoing conflict in the Middle East. that could affect global energy supplies. India consumed about 31.3 million tonnes of LPG during the 2024–25 financial year, but domestic production stood at only 12.8 million tonnes. The remaining requirement was met through imports.
A significant portion of these imports, around 85 to 90 per cent, comes from countries such as Saudi Arabia. These shipments typically pass through the Strait of Hormuz, a crucial maritime route that has recently been affected by escalating regional tensions following military strikes and retaliatory actions in the region.
To prevent supply shortages, the government has ordered both public and private sector refiners to ensure that all propane and butane streams produced by them are directed exclusively towards the manufacture of LPG. LPG is primarily composed of a mixture of these two hydrocarbons.
The order also mandates that the LPG produced under these directives must be supplied solely to the three public-sector oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, for distribution to domestic consumers.
Refineries have also been barred from using propane and butane for the production of petrochemicals during this period. The LPG produced under the new directives must be used exclusively for domestic cooking purposes. Any violation of the order will attract penal action.
The Essential Commodities Act, 1955, empowers the central government to regulate the production, supply, distribution, pricing and trade of goods considered essential to the public. The law, which received presidential assent on April 1, 1955, also allows authorities to impose stock limits, restrict the movement of commodities and mandate compulsory procurement when supply shortages or price surges occur.
Implementation of the Act’s provisions is largely delegated to state governments, which can enforce stock limits and other regulatory measures to ensure adequate availability of essential commodities.