Centre invokes Essential Commodities Act to secure LPG, LNG amid West Asia crisis

The Centre has invoked the Essential Commodities Act with regard to the processing, supply, storage and other aspects of petroleum products and natural gas amid concerns over the supply of LPG in the wake of the escalating West Asia conflict.

According to a report by the Hindustan Times quoting an official, as per the Act, it is mandatory for all entities “engaged in production, processing, refining, storage, transportation, import, export, marketing, distribution and consumption of petroleum products and natural gas” to furnish their latest data to the Petroleum Planning and Analysis Cell (PPAC). PPAC is the nodal agency of the Ministry of Petroleum for data collection and compilation.

Elaborating on the development, Sujata Sharma, joint secretary in the Ministry of Petroleum, said that on Thursday (March 19), the Centre issued a gazette notification designating the PPAC as the nodal agency for the collection and processing of the data.

Notification and PPAC role

Yesterday, under Section 3 of the Essential Commodities Act, the government issued a Gazette Notification, whereby PPAC has been designated as a nodal agency for the collection, compilation, maintenance, and analysis of information,” said Sharma.

Also Read: India calls West Asia crisis ‘testing time’, PM Modi speaks to Kuwait Prince

Although it is the mandated task of the PPAC to collect data related to the oil and gas sector, but as per the latest notification data has to be collected almost on a real-time basis.

Any breach of directions issued under Section 3 of the Essential Commodities Act is treated as a criminal offence and can attract penal action, including imprisonment, as per the provisions of the law.

Crude supply and refining status

In her routine briefing on the country’s energy situation, Sharma on Thursday indicated that crude availability remains sufficient, with refineries continuing to run at full capacity. Petrol outlets across regions are operating without disruption, and no instances of dry-outs have been reported, she said.

Also Read: Over 2 million tonne of Indian LPG, LNG cargo stranded in Persian Gulf

On the gas front, she noted that supplies of piped natural gas and compressed natural gas are being maintained at full levels. “Commercial LPG [liquefied petroleum gas] users are being encouraged to shift to PNG through CGD [City Gas Distribution] companies with incentives and quick connections where networks exist,” she said.

Providing further details, Sharma said the push towards piped connections has gathered pace in recent days. “In the last three days, over 5,600 LPG consumers have shifted to PNG,” she added, pointing to the ongoing transition among users.

PNG expansion and demand measures

Separately, she said around 1.25 lakh new domestic and commercial PNG connections have been released over the past two weeks as part of the government’s measures to manage demand.

Also Read: LPG shortages remain ‘worrisome’ despite stable crude supply: Govt

The developments come against the backdrop of disruptions in West Asia, where recent strikes on energy infrastructure, including at Qatar’s Ras Laffan industrial hub, have raised concerns over global LNG supplies and their impact on import-dependent countries such as India.

India continues to meet its energy requirements through multiple sourcing arrangements, importing crude oil from a wide base of suppliers, including Russia, the United States and Venezuela, while natural gas is sourced from countries such as the US, Australia, Norway and Russia.

Supply chain and enforcement steps

Addressing demand-side controls, Sharma said states and local administrations have been engaged to check hoarding and black market activities.

“States have activated control rooms and intensified raids,” she said, adding that oil marketing companies are also undertaking field-level inspections.