India mandates refiners to prioritise LPG production under Essential Commodities Act
Refineries must divert propane and butane to domestic LPG supply
Change
India invoked the Essential Commodities Act to require refiners to maximise LPG production and restrict diversion of feedstock.
Why it matters
The order forces refiners to allocate propane and butane streams to LPG production and supply exclusively to public-sector distributors for domestic use.
Implications
- — Refiners must adjust processing outputs — diversion to petrochemicals is prohibited
- — Distributors must supply LPG to households — allocation flexibility is restricted
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