Essential Commodities Act: HPCL Bolsters LPG Production Amid Israel-US-Iran War

Amid an anxiety-stricken environment fueled by concerns over unperturbed LPG supply, Hindustan Petroleum Corporation Ltd (HPCL) noted, steps have been taken to enhance LPG production and prioritise its availability for domestic consumers and essential non-domestic sectors.

Meanwhile, people are lining up in across several cities and town outside LPG stations amid fears that war-linked strikes could further damage the flow of energy supplies from the Strait of Hormuz, which is a critical trade chokepoint for energy supplies.

This comes at a time when there was a recent spike in LPG prices. The price of a domestic 14.2 kg LPG cylinder has increased by Rs 60, taking the cost in Delhi to about Rs 913, while commercial cylinders became costlier by around Rs 115.

Currently, India is maintaining its stance of no energy crisis. The Minister of Petroleum and Natural Gas (MoPNG) Hardeep Singh Puri noted that there was “no shortage of energy in India and no cause for concern” for consumers.

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Why Is The Centre Taking Precautionary Measures?

While supplies remain adequate, the concerned authorities are taking steps to avoid future instances of black marketing, hoarding, and supply chain disruptions.

Recently, the government invoked provisions under the Essential Commodities Act and directed oil refiners and oil marketing companies to prioritise LPG production and supply for household cooking needs.

Further, HPCL further noted, "Requests from other non-domestic sectors will be reviewed by a committee of Executive Directors from Oil Marketing Companies and prioritised based on merit, necessity, and product availability."

“For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries,” the government noted, citing media reports.

The MoPNG has formed a committee after rising cases of restaurant associations about dwindling supplies. The hospitality sector has warned that the gas shortage could force eateries to shut down within days if the situation is not resolved.