India invokes Essential Commodities Act to regulate petroleum and natural gas supply
Change
India invoked the Essential Commodities Act to place petroleum, petroleum products and natural gas under central control and reallocate supplies, prioritising household LPG, piped cooking gas, city gas distribution and CNG while mandating fertiliser get at least 70% and industrial and tea consumers 80% of their past six‑month gas consumption.
Why it matters
The order grants authorities binding powers to divert domestic and imported gas away from non-priority commercial and petrochemical users, reducing their guaranteed access to past consumption levels. Suppliers and refiners are required to reconfigure feedstock allocations and boost domestic LPG output, constraining normal feedstock availability and industrial fuel supply chains.
Implications
- • Refinery operators must divert petrochemical feedstock streams and increase domestic LPG production using additional natural gas allocations.
- • City gas distribution entities supplying industrial and commercial customers must limit deliveries to those customers to 80% of their past six‑month average consumption, subject to operational availability.
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Source
Topics
Regulatory Actions Supply Chain & Logistics Oil & Gas Energy Transition