Government Invokes Essential Commodities Act
Amid a global energy crisis triggered by the West Asia war, India has invoked the Essential Commodities Act. The Petroleum Ministry now requires all entities involved in production, refining, storage, transport, import, export, and distribution of petroleum products and natural gas to furnish detailed data to the Petroleum Planning and Analysis Cell (PPAC). Joint Secretary Sujata Sharma clarified that PPAC has been designated as the nodal agency for real-time collection, compilation, and analysis of information.
Strict Penalties for Non-Compliance
Authorities stressed that violating an order issued under Section 3 of the Act constitutes a criminal offence. Offenders may face imprisonment and legal action. This move strengthens the government’s monitoring of fuel supply and helps manage exigencies effectively. Sharma added that the government has armed PPAC with the authority to seek granular, almost real-time data from oil and gas companies to ensure uninterrupted energy supply.
Energy Supply Situation in India
Despite the crisis abroad, India’s crude supply remains adequate. Refineries are operating at full capacity, and petrol pumps report no shortages. Natural gas, including PNG and CNG, continues at 100% supply. Over the past two weeks, the government added 125,000 new PNG connections, while 5,600 LPG users switched to PNG. Incentives and quick connections through city gas distribution companies encourage commercial users to shift from LPG to PNG. Panic bookings have also reduced significantly, with online bookings now covering 94% of deliveries.
Diversified Sourcing to Mitigate Crisis
India imports crude and natural gas from around 40 countries, including Venezuela, Russia, the US, Australia, and Norway. Recent disruptions in Qatar, following Iran’s attack on its LNG and LPG facilities, underscore India’s reliance on diversified energy sourcing. To curb hoarding and black marketing, states and local administrations have activated control rooms and intensified inspections. OTP-based delivery authentication ensures that 83% of LPG refills reach the intended consumers, preventing shortages and panic.
