Rapid Fire
Essential Commodities Act, 1955
- 09 Mar 2026
- 3 min read
Amid rising global energy uncertainty caused by the US-Israel–Iran conflict and disruptions in West Asian oil supply routes, India has directed refiners to increase Liquefied Petroleum Gas (LPG) production under the Essential Commodities (EC) Act, 1955.
- At the same time, the US has temporarily allowed India to purchase Russian crude oil for 30 days to stabilize global energy markets.
- Essential Commodities Act, 1955: Enacted by the Government of India to ensure the availability of essential goods to citizens at fair prices and prevent hoarding, black marketing, and artificial shortages.
- Historically, this legislation has been the primary tool used by the government to curb hoarding, offset retail inflation, and maintain national food security.
- Under Section 3, the Central Government can control the production, supply, and distribution of essential goods. It can impose stock limits, regulate trade, fix prices, and restrict hoarding.
- Under Section 5 of the Act, the Central Government may delegate its powers under Section 3 to State Governments or authorised officers, enabling swift and effective enforcement at the ground level.
- 2020 Amendment: The Parliament amended the Act in 2020 to restrict the Centre’s power to regulate specific commodities (cereals, pulses, potatoes, onions, edible oilseeds, and oils) strictly to extraordinary circumstances such as war, famine, extraordinary price rise, and natural calamity of grave nature.
- LPG under EC Act: Petroleum products, including LPG, are classified as “Essential Commodities” under the Essential Commodities Act, 1955.
- The Central Government has directed oil refineries to maximise production of LPG and ensure its distribution is prioritised for domestic households.
- Refineries have also been prohibited from diverting propane and butane streams to petrochemical production, ensuring these inputs are used primarily for LPG supply.
- The Central Government has directed oil refineries to maximise production of LPG and ensure its distribution is prioritised for domestic households.
| Read more: Essential Commodities Act of 1955 |
