Last Updated:March 10, 2026, 17:02 IST

The government's decision was taken to address potential shortages caused by developments in West Asia.

The Centre on Tuesday invoked the Essential Commodities Act to regulate the availability, supply and equitable distribution of petroleum, petroleum products and natural gas, as tensions in West Asia raise concerns about potential disruptions to global energy supplies.

The government said domestic piped natural gas connections and compressed natural gas used by vehicles will continue to receive 100% assured supply despite the broader constraints.

The decision was taken to address potential shortages linked to developments in West Asia and possible disruptions to shipments through key routes such as the Strait of Hormuz.

Authorities have directed oil refineries and petrochemical units to increase production of liquefied petroleum gas to the maximum possible level and redirect key hydrocarbon streams into the LPG pool.

The move empowers authorities to ensure uninterrupted access to critical fuel supplies, prevent hoarding and stabilise distribution amid the ongoing conflict in West Asia, while protecting consumers from potential supply shocks.

Impact Of Essential Commodities Act

• While households and transport fuel users will continue to receive full supply, industrial users will face restrictions as the government prioritises essential consumption.
• Industries connected to the natural gas grid, including tea processing units, manufacturing plants and other industrial consumers, will receive about 80% of their average gas supply based on the previous six months.
• Other commercial and industrial natural gas consumers are also being restricted to 80% of their previous six-month supply levels.
• Fertiliser manufacturers will receive 70% of their average supply during the same period.
• The sharpest reduction will apply to refineries and petrochemical plants, where natural gas supply has been cut by about 35%.
• India receives around 30% of its natural gas imports through the Strait of Hormuz, making the route critical for supplies. Any disruption or constraint in this corridor could significantly affect availability, prompting the government to introduce supply controls under the Essential Commodities Act.

News india Govt Invokes Essential Commodities Act Amid West Asia Oil Shock: What It Means For CNG, LPG Users

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