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Essential Commodities Act Invoked for Gas Allocation: 100% to PNG/CNG, 70% to Fertilizer, 80% to Industry Amid Strait of Hormuz Disruption

EconomyPolityIntl. RelationsHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
10 Mar 2026
~2 min
Source: Indian Express
Key Data:190 mmscmd gas requirement50% LNG import dependency30% gas via Strait of Hormuz33 crore LPG consumers60 lakh cylinders/day65% refinery supply
Bodies:Ministry of Petroleum and Natural Gas (MoPNG)Petroleum Planning & Analysis Cell (PPAC)GAILMinistry of Fertilizers
Practice MCQs from today's news ▸
What This Article Covers

1.The Ministry of Petroleum and Natural Gas invoked the Essential Commodities Act to divert natural gas to priority sectors due to LNG import disruptions via the Strait of Hormuz.

2.A four-category priority list was created: 100% supply to PNG, CNG & LPG; 70% to fertilizer; 80% to tea/industry; and 80% to CGD commercial consumers.

3.India imports ~50% of its 190 mmscmd gas, with over 50% of LNG coming via the Strait of Hormuz, which accounts for ~30% of India's total gas consumption.

The Big Picture
Prelims · HighMains · Medium

The government has used the Essential Commodities Act to manage a critical shortage of LNG imports, creating a four-tier priority system for natural gas allocation. This is a direct response to supply disruptions through the Strait of Hormuz, a vital global chokepoint. Aspirants must understand this as a case study in crisis management, energy security, and the application of emergency economic laws.

Exam Lens

Quick Exam Facts From News

Gas Consumption~190 mmscmd (million standard cubic metres per day)
LNG Import Dependency~50% of total gas requirement
Strait of Hormuz Share~30% of India's total gas consumption
Domestic LPG ConsumersOver 33 crore
LPG Cylinder Disbursement60 lakh cylinders per day
Refinery Gas Supply Cut65% of past 6-month average
LPG Refill Waiting PeriodIncreased from 21 to 25 days
LPG Production Increase10% rise due to emergency measures

1-Minute Revision

  • ›Gas Consumption: ~190 mmscmd (million standard cubic metres per day)
  • ›LNG Import Dependency: ~50% of total gas requirement
  • ›Target this Data: India's natural gas requirement is ~190 mmscmd; ~30% of this comes via the Strait of Hormuz.
  • ›Target this Nodal Body: Ministry of Petroleum and Natural Gas (MoPNG) and the Petroleum Planning & Analysis Cell (PPAC).
  • ›Target this Legal Point: Invocation of the Essential Commodities Act, 1955 for supply management.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry issued the order invoking the Essential Commodities Act for priority gas allocation as per the news?

Q2Statement-basedHard

Consider the following statements regarding the gas allocation priority order:

1. The top priority category, receiving 100% of past average consumption, includes PNG for households and CNG for transport.

2. Fertilizer units are in the second priority category and are allocated 80% of their past average gas consumption.

3. The supply of natural gas to refineries has been cut to 65% of their average consumption of the past six months.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what percentage of India's total natural gas consumption comes via the Strait of Hormuz?

Q4Application/ImpactMedium

What was the primary objective of the government invoking the Essential Commodities Act in the context of the news?

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