New Delhi: The Indian government has invoked the Essential Commodities Act, 1955 to stabilise the supply of liquefied petroleum gas (LPG) amid concerns about potential shortages triggered by disruptions in global energy markets. The move aims to prioritise domestic cooking gas availability and prevent supply constraints for households.
According to a report by LiveMint, the Centre has directed all public and private oil refineries across the country to increase the production of LPG. Refiners have been instructed to ensure that propane and butane key components used to produce LPG are utilised primarily for cooking gas instead of being diverted for petrochemical manufacturing.
Government of India invokes the Essential Commodities Act, 1955, to regulate the availability, supply and equitable distribution of petroleum and petroleum products and natural gas pic.twitter.com/OqtsDwb13s
— ANI (@ANI) March 10, 2026
Under the order issued on March 5, refiners must supply the LPG produced to the country’s three state-owned oil marketing companies such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). These companies are responsible for distributing LPG cylinders to households across the country.
What Is The Essential Commodities Act, 1955?
The Essential Commodities Act, 1955 was enacted to ensure the steady availability of certain goods that are vital for everyday life. These are items whose shortage could seriously affect the public.
Under this law, the Central Government has the authority to control or restrict the production, supply, distribution, trade, and sale of commodities that are classified as “essential,” including food products, fertilizers, medicines, and fuel. The Act is generally used to curb practices such as hoarding, black marketing, and the creation of artificial shortages, thereby helping maintain fair supply and stable prices in the market.
Why Has India Invoked It Now?
The decision comes at a time when geopolitical tensions in West Asia have raised concerns about disruptions to energy supplies and shipping routes. India depends heavily on imports to meet its LPG demand, and any instability in the region can affect the country’s fuel availability.
By invoking the Essential Commodities Act, the government has used its emergency powers to regulate the production and distribution of essential goods. The law allows authorities to take steps such as directing production, controlling supply chains, and preventing the diversion of critical commodities during periods of shortage.
The measure is intended to ensure that LPG remains available for domestic consumers, particularly for cooking purposes, and to prevent disruptions in household fuel supply. Violations of the government’s order could lead to legal action under the provisions of the Essential Commodities Act and related regulations.
The government’s intervention reflects the importance of safeguarding essential energy supplies during periods of global uncertainty, while maintaining stable access to cooking gas for millions of Indian households.