India Invokes Essential Commodities Act to regulate Gas & Petro supply

Amid the prevailing situation in West Asia, the Government has invoked Essential Commodities Act 1955 to regulate the production, maintain supply, equitable distribution and availability of natural gas for priority sectors. As per a notification of Petroleum and Natural Gas Ministry, the priority of supply of natural gas has been given to sectors including Domestic Piped Natural Gas Supply, Compressed Natural Gas for Transport, LPG production including LPG shrinkage requirements and Pipeline Compressor fuel and other essential pipeline operational requirements. It said that the supply shall be maintained subject to operational availability to 100 percent of their past six month average gas consumption.
The order further states that the government shall ensure supply of natural gas to the fertilizer plants on 70 per cent of their past six-month average gas consumption, subject to operational availability. It added that gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at 80 per cent of their past six-month average gas consumption subject to operational availability. The order also said that all City Gas Distribution entities shall ensure that industrial and commercial consumers supplied through their networks receive 80 per cent of their past six-month average gas consumption subject to operational availability.

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

To maintain supplies for priority users, the government has allowed curtailment of gas to other sectors. Petrochemical facilities — including ONGC Petro additions Limited, GAIL Pata Petrochemical Complex and Reliance O2C — may face supply reductions first, followed by power plants if required.