New Delhi
The Union government on Tuesday invoked the Essential Commodities Act to ensure uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of Liquefied Petroleum Gas (LPG) and divert key hydrocarbon streams to the LPG pool amid disruptions caused by the West Asia conflict.
Under the order, supply of natural gas to certain priority sectors will be maintained at 100 per cent of their average consumption over the past six months, subject to operational availability. These sectors include domestic piped natural gas supply, compressed natural gas for transport, LPG production including shrinkage requirements, and fuel needed for pipeline compressors and essential operational activities.
The government also directed that natural gas supply to fertiliser plants be maintained at 70 per cent of their average consumption over the previous six months, depending on operational availability.
Gas marketing entities have been instructed to ensure that tea industries, manufacturing units and other industrial consumers connected to the national gas grid receive at least 80 per cent of their average gas consumption during the past six months, subject to operational feasibility.
Similarly, all City Gas Distribution companies have been asked to maintain supply to industrial and commercial consumers at 80 per cent of their average consumption during the previous six months, depending on availability.
To manage the impact of disruptions in liquefied natural gas supply, oil refining companies have been directed to absorb the pressure by reducing gas allocation to refineries to around 65 per cent of their average consumption during the past six months, subject to operational feasibility.
The order also requires all producers, importers, transporters, marketers and distributors of natural gas, including LNG and regasified LNG, to provide information on production, imports, stock levels, allocation, supply and consumption to the central government or authorised officials.
Meanwhile, the Ministry of Petroleum and Natural Gas has directed oil refineries to increase LPG production and ensure that the additional output is channelled specifically for domestic consumption.
“In light of current geopolitical disruptions to fuel supply and constraints on LPG availability, the ministry has issued orders to oil refineries to enhance LPG production and utilise the additional output for domestic use,” the ministry said in a post on X.
The government said prioritising household LPG supply was necessary to ensure energy security for citizens amid volatility in global oil and gas markets triggered by the West Asia crisis.
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To prevent hoarding and curb black marketing, the ministry has also introduced a 25-day inter-booking period for LPG consumers.