Context:
The Centre invoked the Essential Commodities Act, 1955 to direct refiners to prioritise LPG production for domestic cooking needs amid supply concerns linked to West Asia disruptions.
Key Data
• Government ordered refiners to maximise LPG production and prioritise domestic supply.
• Refiners instructed not to divert propane–butane streams for petrochemicals or other derivatives.
• LPG is mainly a mixture of propane and butane.
• Production can be increased by rebalancing refining streams.
• Around 60% of India’s LPG is imported, mainly from Persian Gulf countries such as Saudi Arabia and Qatar.
• Domestic refineries produce roughly 40% of India’s LPG requirement.
• Disruption in the Strait of Hormuz may affect LPG imports and logistics.
Essential Commodities Act — Provision Used
• Action taken under Section 3 of the Essential Commodities Act, 1955.
• Section 3 empowers the Centre to regulate production, supply, distribution and pricing of essential commodities to ensure availability and prevent hoarding.
