The Central Government has issued the Natural Gas (Supply Regulation) Order, 2026, invoking powers under the Essential Commodities Act, 1955 (ECA).
- It was prompted by the ongoing conflict in West Asia which has severely disrupted liquefied natural gas (LNG) shipments through the Strait of Hormuz.
Key Provisions of the Order
- Four-Tier Priority Allocation Framework: To manage the limited supply, the allocation framework is based on consumers' average gas usage over the past six months. (see infographic)
- Gas redistribution: Gas supplies will be partially or entirely curtailed for non-priority industries, including power plants and petrochemical facilities.
- Gas Pooling Mechanism: Gas diverted from non-priority to priority sectors will be sold at a newly determined pooled price.
About ECA, 1955
- Objective: It allows the government to regulate production, supply, and prices of essential goods to prevent hoarding, black marketing, and shortages.
- Section 3 of the ECA empowers the Central Government to regulate the supply and distribution of petroleum and petroleum products and related trade for securing their equitable distribution.
Other Measures Taken
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