The central government has invoked the Essential Commodities Act (EC Act) to ensure adequate domestic availability of liquefied petroleum gas (LPG) following disruptions in global crude oil and gas supply linked to the ongoing turmoil in the Middle East.
The decision, announced on Tuesday, March 10, aims to stabilise fuel availability across India, including in cities like Guwahati, where households and businesses rely heavily on LPG for daily cooking and commercial operations.
Authorities said the move was necessary after disruptions in international energy supply routes affected LPG availability and raised concerns about domestic shortages.
The central government has invoked the Essential Commodities Act to ensure adequate LPG availability across India following supply disruptions linked to the Middle East conflict. Refineries have been directed to increase LPG production and prioritise domestic supply, a move expected to stabilise cooking gas availability in cities such as Guwahati.
Government Directs Refineries to Increase LPG Production
The Ministry of Petroleum and Natural Gas has instructed refineries and petrochemical units across the country to increase LPG production and divert key hydrocarbon streams into the national LPG supply pool.
Under the new directive, refiners must channel propane and butane streams exclusively toward LPG manufacturing.
The LPG produced under these instructions will be supplied only to the country’s three public-sector oil marketing companies:
- Indian Oil Corporation (IOC)
- Bharat Petroleum Corporation Ltd (BPCL)
- Hindustan Petroleum Corporation Ltd (HPCL)
These companies are responsible for distributing LPG cylinders across India, including Assam and the Northeast.
Priority Gas Allocation for Key Sectors
To maintain essential fuel services, the government has also prioritised natural gas allocation for certain sectors.
Under the directive, these sectors will receive gas supplies equivalent to 100% of their average consumption over the past six months, subject to operational feasibility.
Priority sectors include:
- Domestic Piped Natural Gas (PNG) supply
- Compressed Natural Gas (CNG) for transport
- LPG production, including shrinkage requirements
- Pipeline compressor fuel
- Other essential pipeline operations
These measures are intended to ensure an uninterrupted cooking gas supply for households and transport fuel availability.
Why the Government Took This Step
The ministry said the action was prompted by disruptions in liquefied natural gas (LNG) shipments through the Strait of Hormuz, a major global energy transit route.
The conflict in the Middle East has caused several suppliers to invoke force majeure clauses, temporarily suspending shipments.
As a result, India has had to redirect available natural gas resources toward priority sectors, including LPG production and domestic fuel distribution.
What It Means for Guwahati
In Guwahati, LPG remains the primary cooking fuel for most households, while commercial establishments such as restaurants, hotels, and food stalls depend on commercial LPG cylinders.
Any disruption in supply can quickly affect both domestic consumers and the city’s hospitality sector.
Officials say the government’s decision to invoke the Essential Commodities Act is aimed at preventing shortages and ensuring that LPG cylinders remain available for households and essential services.
However, businesses that rely on commercial LPG supply may continue to monitor the situation closely as global energy markets remain volatile.
What Happens Next
With refineries directed to boost LPG production and gas allocation prioritised for essential sectors, the government expects domestic supply to stabilise in the coming weeks.
Oil marketing companies are expected to manage distribution to ensure that LPG cylinders reach consumers across the country, including in Guwahati and other parts of Assam.
Authorities will continue monitoring the international fuel situation as the geopolitical crisis evolves.
Frequently Asked Questions
Why did the government invoke the Essential Commodities Act for LPG?
The government invoked the Essential Commodities Act to ensure an adequate domestic LPG supply after disruptions in global oil and gas shipments caused by the ongoing Middle East conflict.
Will the LPG supply be affected in Guwahati?
The government says the new measures are intended to stabilise LPG availability nationwide, including in Guwahati, by increasing production and prioritising supply to essential sectors and households.