Essential Commodities Act invoked by Centre to prioritise natural gas allocation to certain sectors
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims + Mains·
Why in news
The Ministry of Petroleum and Natural Gas invoked the Essential Commodities Act, 1955, to prioritize natural gas allocation to essential sectors following disruptions in LNG shipments through the Strait of Hormuz.
Background
The Ministry of Petroleum and Natural Gas (MoPNG) identified priority sectors as domestic piped natural gas, CNG for vehicular fuel, LPG production, fertilizer manufacturing, tea industries, and industrial consumers. City Gas Distribution (CGD) companies must prioritize supplies to ONGC Petrol additions Limited, GAIL Pata Petrochemical, and Reliance O2C.
Facts for Prelims
- Act / BillEssential Commodities Act, 1955: Invoked by the Centre to prioritize gas allocation.
- FactRefineries are to receive 65% of their past consumption levels under the new allocation.
- FactPriority sectors include domestic piped natural gas, CNG, LPG production, fertilizer manufacturing, tea industries, and industrial consumers.
- PlaceStrait of Hormuz: Location of LNG shipment disruptions.
For Mains
Q. Examine the role of the Essential Commodities Act in ensuring energy security and managing supply chain disruptions in India's industrial and domestic sectors.
Dimensions to cover in your answer
- Supply chain vulnerability: High dependence on maritime routes like the Strait of Hormuz for LNG imports
- Regulatory intervention: Balancing industrial growth with the necessity of ensuring domestic energy security
- Sectoral prioritization: Trade-offs between refinery requirements and essential manufacturing like fertilizer and tea
Keywords: Energy Security · Supply Chain Resilience · Regulatory Intervention · Essential Commodities · Strategic Allocation
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