The Indian government has invoked the Essential Commodities Act, 1955, to regulate the production, supply, and distribution of critical goods amid a global energy crisis.
The move comes after Iran closed the Strait of Hormuz amid the ongoing war with the US, disrupting LPG imports and affecting India's fuel supply chain.
India has around 332 million active LPG consumers, making the stability of cooking gas supplies a major concern for households and businesses alike.
The Essential Commodities Act empowers the government to intervene and manage the supply of commodities deemed “essential”, including food items, fertilisers, drugs, fuel and energy products.
Under the Act, the government can control production or refining of essential goods, regulate supply and distribution, fix prices, and set stock limits to prevent hoarding.
The immediate trigger for the government's move is the disruption in LPG imports caused by the conflict in the Middle East, with over 80% of India's imports passing through the Strait of Hormuz.
The government has prioritised natural gas supplies for sectors critical to daily consumption and essential infrastructure, including domestic Piped Natural Gas (PNG) supply, Compressed Natural Gas (CNG) used for transport, and LPG production.
