India Prioritizes Domestic LPG Amid West Asia Fuel Crisis

The Indian government has enacted the Essential Commodities Act to safeguard domestic energy supplies amidst a global fuel crisis. The move mandates maximum LPG production and a priority distribution strategy, ensuring households receive consistent cooking gas despite natural gas shortfalls due to the ongoing West Asia conflict.

In response to escalating global fuel challenges sparked by the West Asia conflict, the Indian government has invoked the Essential Commodities Act (EC Act). On Tuesday, the Ministry of Petroleum announced a directive requiring refineries and petrochemical units to boost liquefied petroleum gas (LPG) production to guarantee uninterrupted home gas supply.

The Ministry outlined a new prioritization scheme for natural gas distribution, securing a full supply of domestic piped gas for residences and compressed natural gas (CNG) for vehicles. Other sectors, including the tea industry, will encounter supply cuts, limited to 80% of their average consumption over the past six months.

Fertilizer plants will see a 70% allocation based on previous usage, as the government redistributes resources amid supply disruptions. This strategic shift involves a 35% reduction in natural gas to refineries and petrochemical facilities, essential steps as India diversifies its natural gas procurement to counter regional instability.

With the Strait of Hormuz responsible for 30% of India's natural gas intake, the Ministry emphasized alternative trade routes to maintain national energy security. A committee is addressing LPG needs for restaurants and vehicles, ensuring continued supply across varied sectors.

The government has introduced a 25-day inter-booking interval to deter hoarding and black marketing, maintaining fair LPG distribution despite global uncertainties.

(With inputs from agencies.)