Gas Shortage Essential Commodities Act : Crisis of LPG Gas!! Finally, the Center implemented a new law

Gas Shortage Essential Commodities Act : The war between Iran and Israel has increased instability in the Middle East. This situation has created pressure on the global energy supply chain and it seems to be affecting many countries including India. Iran’s closure of the Strait of Hormuz has had a major impact on India’s trade and gas supply in particular. There is a huge rush for LPG gas cylinders in many places in the country. As the shortage of gas is visible in front of our eyes, many people are also trying to buy and store maximum gas.

Keeping this situation in mind, the Government of India has taken some drastic and urgent steps to avoid a possible energy crisis. The government has invoked emergency powers under the Essential Commodities Act (ESMA) of 1955 to avoid shortage of LPG. After the implementation of this Act, the central government has ordered all the petrochemical companies in the country to prioritize the production of LPG gas over other products. Under the ESMA Act, the central government has powers to regulate the production, storage, sale and pricing of any essential commodity. Gas Shortage Essential Commodities Act

Currently, LPG is supplied in India mainly through three state-owned oil marketing companies. Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum. Against this backdrop, these companies have been instructed to maintain smooth distribution of LPG throughout the country. Millions of households in rural and urban areas depend on this gas for daily cooking. Therefore, the government is making special efforts to ensure that there is no shortage.

India is one of the largest LPG consuming countries in the world. Millions of households in the country depend on LPG for cooking. According to available data, India consumed approximately 31 to 33 million tonnes of LPG in the financial year 2024-25. Of this, only 12 to 13 million tonnes of LPG came from domestic production, while the remaining bulk was imported from other countries. This makes India’s LPG supply chain heavily dependent on the international market. In particular, India receives large quantities of LPG from Saudi Arabia, Qatar and the United Arab Emirates. Gas Shortage Essential Commodities Act

Oil and gas vessels from these countries mainly travel through the very important sea route, the Strait of Hormuz. This route is considered one of the most important energy transport routes in the world. However, due to the increasing tension in the Middle East, there are obstacles in the movement of ships on this route. War-like conditions have increased security risks, with many ships arriving late or diverting some routes.

Apart from this, information is also coming out that LNG and LPG production facilities in major supplier countries like Qatar have been affected. This is likely to affect the supply of natural gas and LPG to India. Hoteliers are not getting gas cylinders. Many gas suppliers are expressing their inability to supply commercial cylinders, causing difficulties for restaurant and hotel businesses. In Mumbai, there are reports that almost 20 percent of hotels and restaurants are closed due to non-availability of gas cylinders.

To deal with this crisis, the central government has taken some important decisions. The government has issued a notification clarifying that propane and butane used for petrochemical production should be used preferentially for LPG production. Apart from this, all the refineries in the country have been directed to maximize the production of LPG.