Govt Invokes Essential Commodities Act Amid Shortage Concerns; Commercial Supplies Halted Across India

The Government of India has invoked the Essential Commodities Act 1955 amid concerns of LPG shortage to ensure an uninterrupted supply of domestic cooking gas after hotels and restaurants reported a shortage of commercial LPG.

Under the move, authorities have directed refineries and petrochemical units to maximise LPG production and divert key hydrocarbon streams to the LPG pool to increase availability and stabilise supplies for household consumption.

The government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate production and sector-wise allocation of natural gas, including LNG and re-gasified LNG.

Priority allocation under the order will be given to sectors such as domestic PNG supply, CNG for transport, LPG production, pipeline compressor fuel requirements, fertiliser plants, tea industries and other key industrial consumers.

State-run GAIL has been tasked with implementing the regulation in coordination with the Petroleum Planning and Analysis Cell (PPAC) to ensure adherence to the sector-wise allocation framework.

Meanwhile, in response to the gas shortage, several states, including Delhi, Madhya Pradesh, Maharashtra, Uttar Pradesh, Rajasthan, and Chhattisgarh, have temporarily suspended commercial gas supplies.

This ban has forced the closure of restaurants and hotels. Owners of small hotels and eateries have urged the government to restore supplies.

Refill Waiting Period Increased

The Government has increased the minimum waiting period for booking a domestic LPG refill from 21 days to 25 days to prevent hoarding amid signs of panic buying in the market.

Officials said the country currently has sufficient LPG supply and the revised booking interval is meant to manage inventory more effectively. The surge in demand, estimated at 15–20 per cent, has been driven by fears that supplies could be disrupted due to the escalating war in the Middle East.

An official noted that the average household consumes seven to eight LPG cylinders of 14.2 kg in a year and normally does not require a refill in less than six weeks.

No Immediate Fuel Price Hike

A senior official also said petrol and diesel prices will not be increased for now. Oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, are expected to absorb current cost pressures for the time being.

The government is closely monitoring global oil markets but has no immediate plan to raise retail fuel prices.

Meanwhile, Parliament was informed that India currently has crude oil and petroleum product storage capacity sufficient for about 74 days, which could help the country manage supply disruptions arising from geopolitical conflicts.

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