Iran conflict: Govt invokes ESMA to ensure LPG supply

Tue, 10 March 2026
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12:04
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As the West Asia Conflict continues to put pressure on fuel supplies, the Union Government on Tuesday invoked the Essential Commodities Act (EC Act ) to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.

According to the order, the supply of natural gas to the certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent. of their average past six-month average gas consumption. 

These sectors include: Domestic Piped Natural Gas supply; Compressed Natural Gas for transport; LPG production including LPG shrinkage requirements; Pipeline compressor fuel and other essential pipeline operational requirements.

The order further states that supply of natural gas to the fertilizer plants shall ensure seventy per cent. of their past six-month average gas consumption, subject to operational availability.

It has also asked gas marketing entities to 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-month average gas consumption subject to operational availability.

All City Gas Distribution entities have been asked to 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 have been ordered to 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-month gas consumption, subject to operational feasibility.

Every producer, importer, transporter, marketer or distributor of natural gas including LNG and regasified LNG has been asked to furnish information relating to production, imports, stocks, allocation, supply and consumption to the Central Government or to any officer authorised by it. -- ANI