• Source:JND
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US-Iran War: The Centre on Tuesday invoked the Essential Commodities Act, 1955, to regulate the availability, supply and equitable distribution of petroleum and petroleum products and natural gas amid the crisis in the Gulf region due to the ongoing US-Israel war with Iran.

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The law aims to ensure equitable distribution and prevent shortages of crucial energy resources, safeguarding national energy security during geopolitical tensions. The move came after reports emerged that hotels and restaurants were facing a commercial LPG shortage in a few cities. The law will also ensure the diversion of key hydrocarbon streams to the LPG pool.

Authorities have also asked these facilities to divert key hydrocarbon streams to the LPG pool in order to boost availability and stabilise supplies for household consumption. The government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate the production and sector-wise allocation of natural gas, including LNG and re-gasified LNG, ensuring priority supply to critical sectors.

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Here Are The Key Highlights Of The Essential Commodities Act 1955

  • "The Central government may, with a view to maintaining supplies and securing equitable distribution and availability of natural gas for the priority sector, hereby directs as under: Priority Sector 1 (1) The supply of natural gas to the following sectors shall be treated as priority allocation and shall be maintained subject to operational availability to one hundred per cent of their average past six-month gas consumption," the notification read.
  • The supply of natural gas to the fertiliser plants shall ensure seventy per cent. of their past six months' average gas consumption, subject to operational availability:
  • Provided that the units shall not use the gas supply for any other purpose except in the production of fertilisers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell (PPAC) through the Ministry of Fertiliser.
  • Provided further that allocation to a particular unit may not be diverted to any other unit.
  • The gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent. of their past six months' average gas consumption, subject to operational availability.
  • All City Gas Distribution entities shall ensure that industrial and commercial consumers supplied through their networks receive eighty per cent of their past six-month average gas consumption. subject to operational availability.
  • The oil refining companies shall absorb the impact of LNG supply disruption to the extent feasible by reducing gas allocation to refineries to approximately sixty-five per cent. of the past six months' gas consumption, subject to operational feasibility.
  • The Gas Authority of India Limited in coordination with the PPAC shall manage the supplies of natural gas to implement the above directions for which it shall submit the invoice price of every diverted volume of natural gas to the PPAC.
  • A pooled price shall be notified by the PPAC for the natural gas diverted from non-priority sectors to priority sectors as specified herein.

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