Govt Invokes Essential Commodities Act Amid West Asia Oil Price Surge: What Are Its Impacts?

Last Updated:March 10, 2026, 14:41 IST

The government's decision was taken to address potential shortages caused by developments in West Asia.

The Centre on Tuesday invoked the Essential Commodities Act to regulate the availability, supply and equitable distribution of petroleum, petroleum products and natural gas. The decision was taken to address potential shortages caused by developments in West Asia.

The government has directed oil refineries and petrochemical units to increase production of liquefied petroleum gas to the maximum possible level and to redirect key hydrocarbon streams into the LPG pool.

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Impact Of Essential Commodities Act:

• The government has ensured 100% assured natural gas supply for domestic piped gas connections and CNG used by vehicles. This means households using piped gas for cooking and commuters relying on CNG vehicles will continue to receive an uninterrupted supply despite the broader shortage.
• Industries connected to the natural gas grid — especially tea processing units, manufacturing plants, and other industrial consumers — will receive only 80% of their average gas supply from the past six months.
• Other commercial and industrial natural gas consumers are also being restricted to 80% of their previous six-month supply levels.
• Fertilizer manufacturers will receive 70% of their average supply from the past six months.
• The most significant reductions fall on refineries and petrochemical plants, where natural gas supply has been cut by about 35%.
• Notably, India was receving 30% of its natural gas from the Strait of Hormuz and through this control order, any disruption or constraint in this corridor can significantly impact supply.

News india Govt Invokes Essential Commodities Act Amid West Asia Oil Price Surge: What Are Its Impacts?

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