Essential Commodities Act Invoked for Natural Gas Allocation in India
Context
Due to shortages of commercial natural gas, the Government of India invoked provisions of the Essential Commodities Act, 1955 to ensure supply to priority sectors.
Essential Commodities Act
Objective
- The Act aims to ensure availability of essential commodities at fair prices.
- It also seeks to prevent hoarding, black marketing and artificial shortages, especially during supply disruptions.
Section 3 of the Act
- Section 3 empowers the Central Government to regulate:
- Production of essential goods
- Supply and distribution
- Movement of commodities
- Pricing mechanisms
- It also allows the government to divert supplies and prioritize allocation during emergencies or shortages.
Application in Current Situation
- The government used these powers to redirect domestic natural gas supply to priority sectors such as:
- PNG (Piped Natural Gas)
- CNG (Compressed Natural Gas)
- LPG production
- Fertiliser and manufacturing industries
Vulnerabilities and Impact
- Shortage of commercial LPG particularly affected restaurants and hospitality businesses.
- Some services experienced temporary disruptions due to limited fuel availability.








