Context:
The government invoked the Essential Commodities Act, 1955 amid disruptions in LPG supply due to tensions in the Strait of Hormuz.
Key Highlights:
- Government Action
- Prioritization of LPG supply for households.
- Refineries directed to:
- Channel propane and butane into LPG production.
- Allocation through:
- IOCL, BPCL, HPCL
- Strategic Concerns
- India imports ~90% of LPG via Strait of Hormuz.
- Supply disruptions due to West Asia conflict.
- Regulatory Measures
- Government can:
- Control production, distribution, and pricing
- Prevent hoarding and black marketing
- Regulate storage and transport
- Sectoral Impact
- Priority sectors:
- Households, transport, LPG production
- Reduced allocation for:
- Fertilizer and industrial sectors
Relevant Prelims Points:
- Essential Commodities Act, 1955:
- Empowers government to regulate essential goods.
- Essential Commodities include:
- Food items, fuel, fertilizers, drugs, seeds.
- LPG: Mixture of propane and butane.
- Strait of Hormuz: Key global energy chokepoint.
Relevant Mains Points:
- Ensures energy security and price stability.
- Highlights India’s import dependence vulnerabilities.
- Balancing consumer welfare vs industrial needs.
- Role in crisis management and governance.
- Way Forward
- Diversify energy import sources.
- Boost domestic LPG production.
- Strengthen strategic reserves and supply chains.
UPSC Relevance:
- GS II: Governance
- GS III: Economy, Energy Security