India's petroleum ministry invokes Essential Commodities Act to prioritise LPG and CNG
→Refiners must accept enforced gas curtailments
Change
India invoked the Essential Commodities Act to prioritise piped natural gas (PNG), CNG and LPG under a four-tier allocation; the order overrides existing gas-sale agreements.
Why it matters
Household PNG, CNG transport and LPG production receive full allocations. Fertiliser plants receive 70% allocations and refineries face cuts to about 65%. Priority entities must accept the pooled price for diverted gas and cannot litigate.
Implications
- — Fertiliser teams must furnish PPAC certificates before allocation or lose 70% gas.
- — Refiners must accept immediate curtailments to about 65% of past consumption.
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Source
View on Hindustan Times