Essential Commodities Act Invoked for Gas
The Union Ministry of Petroleum and Natural Gas invoked the Essential Commodities Act on March 10, 2026, to mandate priority allocation of domestically produced natural gas to the LPG (cooking gas) and CNG (compressed natural gas for vehicles) sectors. The order, effective immediately, requires gas producers — including ONGC, Oil India, and Reliance-BP — to ensure that residential and mobility gas needs are met before allocations to industrial and power sector customers are fulfilled.
The Energy Crisis Context
India's energy import bill has surged sharply with the Iran conflict. LNG (Liquefied Natural Gas) spot prices have nearly doubled from $10/MMBtu to $19.5/MMBtu as Asian buyers scramble for non-Middle-East supply. India imported approximately 22.4 million tonnes of LNG in FY2025, and the sudden price spike — combined with some Qatari cargo deferrals — has created gas supply anxiety for city gas distribution networks, power plants, and petrochemical industries.
CNG Vehicle Owners
For India's estimated 6.5 million CNG vehicles — 3 million of which are commercial vehicles — the policy provides some relief. Delhi, Mumbai, Ahmedabad, Pune, and Surat city gas distribution networks had begun implementing "day-odd/day-even" CNG filling restrictions on March 8–9 due to allocation shortfalls. The ECA order should ease these restrictions within 48–72 hours as upstream gas redirection takes effect.
Industrial Impact
The priority allocation order means that some power plants and fertiliser factories operating on spot gas allocations may face curtailments. NTPC has been asked to switch two gas-fired stations to liquid fuel backup for up to 15 days. Fertiliser plants in Gujarat face potential capacity reductions of 20–30%, adding to concerns about the kharif crop fertiliser supply position.
