Centre Invokes Essential Commodities Act to Ensure Uninterrupted Domestic LPG Supply
New Delhi, March 5, 2026:
The Government of India has invoked provisions of the Essential Commodities Act, 1955 to ensure uninterrupted supply of Liquefied Petroleum Gas (LPG) to households across the country amid disruptions in LPG imports.
In an executive order issued by the Ministry of Petroleum and Natural Gas on March 5, 2026 (Ref: M-13017(11)/1/2026-LPG-PNG), the Centre directed all oil refining companies operating in India to maximize the use of propane and butane streams for the production of LPG and make the entire output available exclusively to public sector Oil Marketing Companies (OMCs).
Under the order, the three OMCs — Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) — have been instructed to supply the procured LPG solely to domestic household consumers. Supply of LPG for commercial, industrial and petrochemical purposes has been restricted with immediate effect.
The Ministry stated that the decision was taken as a precautionary step to safeguard public interest and maintain uninterrupted cooking gas supply for households. LPG remains an essential domestic fuel used by millions of families across India, making its steady availability a priority for the government.
The order also prohibits oil refining companies from diverting propane or butane streams for the manufacture of petrochemical products or other downstream derivatives during the period of the directive.
Officials indicated that the measure is temporary and aimed at managing the current disruption in LPG imports. The government expects import supply lines to be restored shortly, after which normal supply conditions are likely to resume.
Any violation of the order will attract action under the Essential Commodities Act, 1955, and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.
Meanwhile, Telangana LPG Distributors Association President K. Jagan Mohan Reddy welcomed the move, stating that the decision would help ensure uninterrupted LPG supply to domestic consumers across the country during the current supply constraints.
