New Delhi: The Indian government on Tuesday invoked the Essential Commodities Act, 1955, to ensure uninterrupted natural gas supplies amid shortages triggered by the escalating conflict in West Asia.
The order specifies that natural gas for domestic piped natural gas (PNG), compressed natural gas (CNG) for transport, LPG production including shrinkage requirements, pipeline compressor fuel, and other essential operations will receive top priority. All gas entities must report production, stocks, and supplies to authorities regularly.
India has 33.08 crore active LPG consumers, making stable supplies critical. The country meets over 80 per cent of its LPG demand through imports, with domestic production covering just 40 per cent.
The decision was taken to address risks from disruptions linked to tensions affecting shipments in the Strait of Hormuz — a vital route for shipments. Tensions involving Iran, Israel, and the United States have raised fears of spillover effects on India’s energy and trade flows. West Asia supplies a significant share of India’s LPG needs.
The Centre has reassured consumers that no immediate shortages exist and the situation remains under close watch. External Affairs Minister S Jaishankar, addressing Parliament on Monday, described West Asia developments as a “deep cause for concern.”
He highlighted the government’s focus on monitoring impacts on global supply chains, energy markets, trade, and commercial activity vital to India’s economy.
