As hotels and restaurants report commercial LPG shortage, the government has invoked the Essential Commodities (EC) Act to ensure the uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise the production of LPG.
The EC Act has been invoked to ensure divert 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.
Under the order, priority will be given to sectors such as domestic PNG supply, CNG for transport, LPG production, pipeline compressor fuel requirements, fertiliser plants, tea industries, and other key industrial consumers.
Moreover, the government has tasked GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), with implementing the natural gas supply regulation and ensuring adherence to the sector-wise allocation framework.
In the meantime, the government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 days to 25 days to prevent hoarding, as there were signs of panic buying taking place in the market amid the uncertainties due to the Iran war.
Officials said that there is a sufficient supply of LPG available in the country, and the booking time for LPG cylinders has been increased as a measure to manage inventory effectively.
The step has been taken as there was a surge in demand of 15 to 20 per cent due to panic booking, due to fears that supply would be disrupted because of the escalating war in the Middle East.
Average households consume 7-8 LPG cylinders of 14.2 kg in a year and should normally not need a refill in less than 6 weeks, an official pointed out.
A senior official said that petrol and diesel prices will not be increased for now. Oil marketing companies-- Indian Oil, Bharat Petroleum and Hindustan Petroleum-- are expected to absorb the current cost pressure for the time being. He said the government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices.
Meanwhile, the Parliament was informed on Monday that India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts.
The government order states that priority allocation shall be maintained, subject to operational availability, to 100 per cent of their average past six month average gas consumption for the supply of natural gas for domestic piped natural gas supply, compressed natural gas for transport, LPG production including LPG shrinkage requirements as well as pipeline compressor fuel and other essential pipeline operational requirements. This has been listed as priority sector 1.
The Centre has directed refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The supply of natural gas to the fertiliser plants, which is listed as priority sector 2, shall ensure 70 per cent. of their past six month average gas consumption, subject to operational availability. The order also states that these units shall not use the gas supply for any other purpose except in the production of fertilizers and a certificate to this effect shall be furnished to the Petroleum Planning and Analysis Cell (hereinafter referred to as the "PPAC") through the Ministry of Fertiliser, the order states.
(With inputs from IANS)
