REGULATORY · MARKET STRUCTURE · INDIA
India brings petroleum and gas under Essential Commodities Act
Change
On 10 March 2026, the Central government brought petroleum, petroleum products, and natural gas — including LNG and re‑gasified LNG — under the Essential Commodities Act, 1955 to regulate supply and distribution.
Why it matters
Petroleum, petroleum products, natural gas, LNG, and re-gasified LNG are placed under the Essential Commodities Act. Refineries were directed to increase domestic LPG production by diverting petrochemical streams and using natural gas. A revised allocation ranking assigns the fertiliser sector second, guaranteeing at least 70% of its past six months' demand, and positions tea industries, manufacturing, and other industrial consumers third with 80% of their past six months' average gas consumption. City gas distribution entities supplying industrial and commercial consumers are placed fourth and are required to ensure customers receive 80% of their past six months' average gas consumption subject to operational availability.
Implications
- • Refineries directed to divert petrochemical feedstocks and use natural gas to raise domestic LPG output.
- • Fertiliser producers allocated at least 70% of their past six months' gas demand.
- • Tea, manufacturing, and other industrial gas consumers limited to 80% of their past six months' average consumption.
- • City gas distributors required to manage industrial and commercial deliveries to supply up to 80% of prior six‑month averages, subject to operational availability.
Who is affected
- • Refineries and domestic LPG producers
- • Fertiliser sector operators
- • Industrial gas consumers (tea, manufacturing and other industrial users)
- • City gas distribution entities and their industrial/commercial customers
Source
Topics
Law & Public Safety Regulatory Actions Energy & Power Oil & Gas Energy Transition