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Centre Invokes Essential Commodities Act To Regulate LPG Supply Amid Iran War

TOI.in / Mar 10, 2026, 16.01 PM IST

The government has invoked the Essential Commodities Act to secure uninterrupted domestic LPG supply, directing refineries and petrochemical units to prioritize liquefied petroleum gas production. Under the Ministry of Petroleum and Natural Gas’ order, all C3 and C4 streams—including propane, butane, propylene, and butenes—must be routed exclusively to the three state-run oil marketing companies: Indian Oil, Bharat Petroleum, and Hindustan Petroleum, which dominate domestic LPG distribution. Refineries and petrochemical units are barred from using these streams for petrochemical or other purposes. The ministry highlighted LPG’s essential role in households across India and stressed that ensuring its steady availability is in the public interest. Oil companies are required to supply LPG only to domestic consumers, reinforcing household access during this period.

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