Government Invokes Essential Commodities Act for Tiered Natural Gas Allocation
The Ministry of Petroleum and Natural Gas (MoPNG) has invoked the Essential Commodities Act, 1955, to implement a tiered allocation structure for natural gas, prioritizing certain sectors. Domestic piped natural gas (PNG), Compressed Natural Gas (CNG) for vehicular fuel, and Liquified Petroleum Gas (LPG) production are among the priority sectors, along with fertilizer manufacturing and industrial consumers. Priority allocation ensures uninterrupted supply at "hundred per cent" for these sectors, based on their average consumption over the previous six months. Fertilizer plants will receive 70% of their consumption requirements. This move aims to manage supply amid shortages and ensure critical sectors are served efficiently.
Key Points
- The government invoked the Essential Commodities Act, 1955, for tiered allocation of natural gas.
- Priority sectors include domestic PNG, CNG for vehicles, LPG production, fertilizer manufacturing, and other industrial consumers.
- Priority sectors will receive 100% uninterrupted supply based on previous six months' average consumption.
- Fertilizer plants are allocated 70% of their consumption requirements.
- This move aims to manage supply amid shortages and ensure critical sectors are served.
Exam Facts
- The Essential Commodities Act, 1955, was invoked by the Ministry of Petroleum and Natural Gas (MoPNG).
- A gazette notification was issued on March 9.
- Fertilizer plants will receive 70% of their consumption requirements.
- Domestic PNG, CNG for transport, and LPG production are accorded 'priority allocation' at 100%.
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