Govt invokes Essential Commodities Act for gas supply as Middle East crisis rattles oil markets
This order gives the government the power to override all existing gas sale agreements and business arrangements if needed.
PTC News Desk: The government on Tuesday decided to control the supply of natural gas because the conflict in West Asia has disrupted LNG shipments passing through the Strait of Hormuz. To manage the situation, the government will first ensure gas supply to homes with piped gas connections, vehicles that run on CNG, and units that produce LPG used for cooking.
On Monday night, the petroleum ministry issued the Natural Gas (Supply Regulation) Order, 2026, under the Essential Commodities Act, 1955. This order gives the government the power to override all existing gas sale agreements and business arrangements if needed.
“The ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz,” the ministry of petroleum and natural gas said in an order, adding that the new rules would “ensure equitable distribution and continued availability for priority sectors”.
The order introduces a four-level priority system for gas distribution. Essential sectors will get supply first, while sectors such as petrochemical plants, power plants, and oil refineries may receive less gas so that basic needs can be met.
Sources said Prime Minister Narendra Modi held a meeting with petroleum minister Hardeep Singh Puri and external affairs minister S Jaishankar before the Cabinet and Cabinet Committee on Economic Affairs (CCEA) meetings on Tuesday. During the Cabinet meeting, ministers were informed about the gas supply situation and told there was no need to panic.
The Cabinet was also told that any problems with LPG supply should be resolved within a day or two and that necessary instructions were being issued. Union home minister Amit Shah and finance minister Nirmala Sitharaman are also closely monitoring the situation.
However, the shortage is already affecting commercial users. Restaurants in several cities have reported running out of cooking gas. Industry groups have warned that many establishments could be forced to shut down, affecting hundreds of thousands of businesses. At least one state chief minister has also written to the central government asking for urgent help.