- Recently, the Union Ministry of Petroleum and Natural Gas (MoPNG) invoked the Essential Commodities Act, 1955 by notifying the Natural Gas (Supply Regulation) Order, 2026 amid the ongoing conflict in West Asia and disruptions in LNG shipments through the Strait of Hormuz.
- Establishment of a four-tier priority system for gas allocation: Based on the average consumption of gas from the past six-month.
- Gas redistribution: Lower-priority users like petrochemicals & power plants face cuts to support higher ones.
- Pooled Mechanism: Petroleum Planning & Analysis Cell (PPAC) notifies pooled prices for gas diverted from non-priority to priority sectors, ensuring standardized pricing during shortages. Read More
Invoking of Essential Commodities Act, 1955 For Natural Gas Allocation
Context
Key Points in Natural Gas (Supply Regulation) Order, 2026