India invokes Essential Commodities Act to prioritise liquefied petroleum gas (LPG) production
Change
India invoked the Essential Commodities Act and issued the Natural Gas (Supply Regulation) Order, 2026, imposing a four-tier priority system that directs domestic piped gas, compressed natural gas (CNG) vehicles and LPG producers ahead of petrochemical and power plants.
Why it matters
The order empowers authorities to override existing commercial gas-sale agreements, making previously contracted volumes subject to government reallocation. Lower-priority sectors will face mandatory curtailments, forcing immediate operational changes for facilities dependent on uninterrupted gas supply.
Implications
- • Procurement teams at petrochemical plants must secure alternative feedstocks or build inventory buffers now — failing to do so will force production cuts when government allocations reduce gas deliveries.
- • Operations and fuel-procurement teams at thermal power plants must revise fuel and dispatch plans and notify grid managers of potential capacity reductions because gas allocations can be curtailed by the order.
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