The Central Government has implemented the Essential Commodities Act to stop hoarding of LPG cylinders and avert the domestic gas crisis. The move is aimed at ensuring availability of gas for domestic use and curbing black marketing activities.
According to sources, after the implementation of ECA, special priority will be given to primary sectors in the supply of LPG and other fuels. This means that hospitals, schools, government institutions and other important sectors will not face gas shortage. The government said that an increase in incidents of hoarding and black marketing of LPG cylinders had been seen in the last few months. In such a situation, the implementation of ESMA is a big step to deal with the crisis and provide relief to the general public.
What is ECA?
The Essential Services Maintenance Act (ECA) is a law designed to ensure the continuous supply of critical life-sustaining services. Under this, measures are taken to prevent public transport, health services, and other essential services from being affected, so that the general public is not affected.
Instructions to refineries to increase LPG production
The government has instructed oil refineries to increase LPG production under the ‘ESMA’ law to ensure availability of domestic cooking gas. The move is aimed at dealing with potential supply disruptions due to the growing conflict in West Asia. India’s LPG consumption in FY 2024-25 stood at 31.3 million tonnes, of which only 12.8 million tonnes was produced domestically and the remaining quantity was dependent on imports.
Experts say 85-90 per cent of India’s LPG imports come from Saudi Arabia and other countries, which depend on the vital Strait of Hormuz for transit. Due to the ongoing conflict between Iran and America-Israel for the last 11 days, this waterway has been closed, due to which the possibility of gas and oil crisis has increased.
Impact on LPG supply in India
The news of disruptions in the supply of oil and gas is reaching India. The news of shortage of commercial LPG cylinders in the country has increased the concern of the hotel and restaurant industry. Not only this, the work of hotels in big cities of the country like Chennai, Mumbai and Bangalore has also come to a standstill. Read here…