Centre invokes Essential Commodities Act to stabilise LPG supply amid panic buying

The government has invoked the Essential Commodities Act to ensure uninterrupted LPG supply as hotels and restaurants report shortages. To prevent hoarding, the minimum waiting period for LPG cylinder refills has been extended from 21 to 25 days amid panic buying triggered by Middle East tensions.

New Delhi: As hotels and restaurants report commercial LPG shortage, the government has invoked the Essential Commodities (EC) Act to ensure the uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise the production of LPG.

The EC Act has been invoked to ensure divert key hydrocarbon streams to the LPG pool.

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Authorities have also asked these facilities to divert key hydrocarbon streams to the LPG pool in order to boost availability and stabilise supplies for household consumption.

The government has also issued the Natural Gas (Supply Regulation) Order 2026 to regulate the production and sector-wise allocation of natural gas, including LNG and re-gasified LNG, ensuring priority supply to critical sectors.

Under the order, priority will be given to sectors such as domestic PNG supply, CNG for transport, LPG production, pipeline compressor fuel requirements, fertiliser plants, tea industries, and other key industrial consumers.

Moreover, the government has tasked GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), with implementing the natural gas supply regulation and ensuring adherence to the sector-wise allocation framework.

In the meantime, the government has increased the minimum waiting period for booking a domestic LPG cylinder refill from 21 days to 25 days to prevent hoarding, as there were signs of panic buying taking place in the market amid the uncertainties due to the Iran war.

Officials said that there is a sufficient supply of LPG available in the country, and the booking time for LPG cylinders has been increased as a measure to manage inventory effectively.

The step has been taken as there was a surge in demand of 15 to 20 per cent due to panic booking, due to fears that supply would be disrupted because of the escalating war in the Middle East.

Average households consume 7-8 LPG cylinders of 14.2 kg in a year and should normally not need a refill in less than 6 weeks, an official pointed out.

A senior official said that petrol and diesel prices will not be increased for now. Oil marketing companies– Indian Oil, Bharat Petroleum and Hindustan Petroleum– are expected to absorb the current cost pressure for the time being. He said the government is closely monitoring global oil markets, but there is no immediate plan to raise retail fuel prices.

Meanwhile, the Parliament was informed on Monday that India currently has a total capacity for storage of crude oil and petroleum products for 74 days, which can help to tide over disruptions in case of adverse situations such as geopolitical conflicts.