The central government on Tuesday invoked the Essential Commodities Act of 1955 to maintain natural gas supplies amid the ongoing conflict in the Middle East.
According to the regulation, the supply of natural gas to certain sectors is prioritized. These sectors include domestic pipeline natural gas supply, compressed natural gas for transportation, LPG production including LPG shrink requirements, fuel for pipeline compressors and other essential pipeline operational requirements, news agency ANI reported.
India has 332 million active consumers of liquefied petroleum gas (LPG) and the government has invoked the Essential Commodities Act of 1955 to ensure uninterrupted supply.
The move comes amid a reported shortage of commercial LPG cylinders in major cities like Mumbai, Bengaluru and Chennai.
India is the second largest importer of LPG in the world, with the country consuming 33.15 million metric tonnes of cooking gas last year.
Much of this LPG demand is met by imports, and more than 80% of LPG imports come through the strategic Strait of Hormuz, where vessel movements have effectively come to a standstill due to the conflict in the Middle East.
What is the Essential Commodities Act of 1955?
The Essential Commodities Act was established to ensure the supply of certain commodities or products, the supply of which, in the event of interruption, could affect the daily lives of citizens.
The Act empowers the central government to regulate or prohibit the production, supply, distribution, trade and commerce of commodities declared as “essential” (such as food, fertiliser, medicine and fuel).
(This is a developing story. Check back for updates)
