India invokes Essential Commodities Act to prioritise LPG production
Change
India notified the Natural Gas (Supply Regulation) Order, 2026 under the Essential Commodities Act, directing a four-tier allocation that prioritises household piped gas, CNG vehicles and units producing cooking LPG and gives the directive priority over existing gas sale agreements.
Why it matters
Disruptions to liquefied natural gas shipments through the Strait of Hormuz have tightened import availability, reducing overall domestic gas supply. As a result, lower-priority industrial users face higher risk of curtailments and intermittent fuel shortages that will complicate production and power generation planning.
Implications
- • Petrochemical plant operators must reduce natural gas consumption or secure alternative feedstocks to maintain production when allocations are curtailed.
- • Power plant operators must prepare contingency plans to switch fuels or lower generation in response to reduced gas allocations.
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Source
Topics
Policy & Regulation Regulatory Actions Supply Chain & Logistics Oil & Gas