Essential Commodities Act invoked to prioritise domestic LPG and natural gas supply

Key facts

• The Central Government invoked the Essential Commodities Act (EC Act) to ensure uninterrupted supply of domestic cooking gas amid Middle East conflict disrupting oil and gas supply.
• Priority sectors for 100 per cent of past six-month average natural gas consumption are: Domestic Piped Natural Gas supply, Compressed Natural Gas for transport, LPG production including LPG shrinkage requirements, Pipeline compressor fuel, other essential pipeline operational requirements.
• Fertilizer plants must receive natural gas supply at 70 per cent of their past six-month average consumption, subject to operational availability.
• Tea industries, manufacturing and other industrial consumers via the national gas grid, and all City Gas Distribution industrial and commercial consumers must receive 80 per cent of their past six-month average gas consumption, subject to operational availability.
• Oil refining companies were ordered to absorb LNG supply disruption impact by reducing gas allocation to refineries to approximately 65 per cent of past six-month consumption, subject to operational feasibility.
• All natural gas producers, importers, transporters, marketers or distributors must furnish information on production, imports, stocks, allocation, supply and consumption to the Central Government or authorised officer.
• The Ministry of Petroleum and Natural Gas directed oil refineries to maximise LPG production and divert extra output specifically for domestic use.
• A 25-day inter-booking period for consumers was introduced to prevent hoarding and black marketing.