India invokes Essential Commodities Act to regulate petroleum and natural gas
Change
India invoked the Essential Commodities Act, 1955, to bring petroleum, petroleum products and natural gas — including LNG and re‑gasified LNG — under supply and price controls and diverted gas from non-priority sectors to household cooking gas, city gas distribution and transport.
Why it matters
Non-priority industrial and petrochemical users will face mandated cuts in gas allocations to preserve supplies for household cooking fuel, piped gas networks and transport fuels. Refineries have been ordered to redirect petrochemical streams and use additional gas to boost domestic LPG output, constraining feedstock availability for other processors.
Implications
- • Refineries must divert petrochemical feedstocks and deploy additional natural gas to increase domestic LPG production.
- • City gas distribution entities must supply industrial and commercial customers up to 80% of their past six months' average gas consumption, subject to operational availability.
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Source
Topics
Regulatory Actions Supply Chain & Logistics Oil & Gas Energy Transition