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.
