- Why in news
- On 25 June 2026 the Petroleum Ministry removed all sectoral limits on non-domestic packed LPG and restored supply to pre-West Asia crisis levels. It also eased the diversion of C3/C4 streams to LPG and relaxed bulk LPG supply to 50% of pre-crisis use.
- What it is
- The Essential Commodities Act, 1955 lets the Centre control production, supply and distribution of listed goods in the public interest. During the West Asia crisis it was used to direct C3-C4 refinery and petrochemical streams into LPG production and to restrict commercial LPG. These steps protected household LPG supply.
- Non-domestic packed LPG
- All sectoral restrictions were removed and supply returned to pre-crisis levels.
- Bulk LPG
- Bulk LPG, suspended at the start of the crisis, is now allowed at 50% of pre-crisis consumption.
- Legal basis
- Orders under the Essential Commodities Act required C3-C4 streams to be used only for LPG, diverting them from petrochemicals.
- Production floor
- Even with more C3/C4 for non-LPG uses, indigenous LPG production must stay at no less than 40 TMT per day.
- Role of CHT
- The Centre of High Technology will issue organisation-wise allocation of the C3/C4 streams and report to the Ministry.
- PNG shift
- Consumers already on PNG stay on PNG; eligible others with network access will be moved progressively with CGD entities.
Don’t confuse with LPG vs PNG: LPG is supplied in cylinders or bulk tanks; PNG is piped natural gas supplied through city gas networks run by CGD entities.
Don’t confuse with Domestic vs non-domestic LPG: Domestic LPG goes to households and had top priority; non-domestic (commercial and industrial) LPG was the one restricted.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Shows the Essential Commodities Act can be used to manage energy shocks and protect household supply.
- Restoring supply to industry and petrochemicals eases business costs while keeping a floor on domestic LPG.
Problems
- Dependence on imported LPG leaves supply exposed to West Asia disruptions.
- Diverting feedstock to LPG hurts petrochemical output and downstream users.
Way forward
- Expand PNG and CGD networks to cut reliance on LPG.
- Keep a unified sectoral consumer database and build strategic reserves and diversified import sources.
Put in your answer
Essential Commodities Act in energy crisis: Orders under the Act diverted C3-C4 streams to LPG and were later eased as supply improved.
Unified OMC database: OMCs will maintain a unified sectoral database of commercial and industrial LPG consumers for planning and monitoring.
- 2017Mains GS2 · Q19Analyse India's energy policy cooperation with West Asian countries for energy security.
- 2025Mains GS2 · Q19Integrate energy security with India's foreign policy trajectories, especially Middle East engagement.
- 2020Mains GS2 · Q11Elucidate Centre's centralising tendencies through Epidemic Diseases, Disaster Management, and Farm Acts.
- 2010Prelims Q147Whether sugar and sugarcane are essential commodities under the Essential Commodities Act.
- 2015Prelims Q24Which act regulates agricultural market products, including the Essential Commodities Act, 1955.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Restrictions withdrawn after crisis; topical energy security issue but facts are fresh and procedural.
Worth revising until Prelims 2028: most news questions come within two years of the event.