Govt invokes ECA to ensure LPG supply, orders refineries to divert key streams
Late-evening order bars use of propane, butane streams for petrochemicals; prioritises domestic cooking fuel supply
- Mar 10, 2026,
- Updated Mar 10, 2026 10:56 AM IST
The government has invoked the Essential Commodities Act (ECA) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The directive, issued late-evening on Monday by the Ministry of Petroleum and Natural Gas, requires refiners to channel the entire output of C3 and C4 streams—including propane, butane, propylene and butenes—towards LPG production.
Under the order, these streams must be supplied exclusively to the three state-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation—which together account for nearly the entire distribution of domestic LPG in the country.
The ministry has also barred refineries and petrochemical complexes from diverting these streams for petrochemical production or other downstream uses, in a move aimed at prioritising household LPG supply.
The order said LPG is an essential domestic fuel used widely by households across India and that ensuring its uninterrupted availability is necessary in the public interest.
Oil marketing companies have also been directed to ensure that LPG sourced under the arrangement is supplied only to domestic consumers.
The latest directive supersedes an earlier order issued on March 5 and will remain in force until further orders, the ministry said.
The government has invoked the Essential Commodities Act (ECA) to ensure an uninterrupted supply of domestic cooking gas, directing refineries and petrochemical units to maximise production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool.
The directive, issued late-evening on Monday by the Ministry of Petroleum and Natural Gas, requires refiners to channel the entire output of C3 and C4 streams—including propane, butane, propylene and butenes—towards LPG production.
Under the order, these streams must be supplied exclusively to the three state-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation—which together account for nearly the entire distribution of domestic LPG in the country.
The ministry has also barred refineries and petrochemical complexes from diverting these streams for petrochemical production or other downstream uses, in a move aimed at prioritising household LPG supply.
The order said LPG is an essential domestic fuel used widely by households across India and that ensuring its uninterrupted availability is necessary in the public interest.
Oil marketing companies have also been directed to ensure that LPG sourced under the arrangement is supplied only to domestic consumers.
The latest directive supersedes an earlier order issued on March 5 and will remain in force until further orders, the ministry said.