India Invokes 1955 Act to Regulate Petroleum, Gas Supply

The Indian government invoked the Essential Commodities Act of 1955 on March 9, 2026, to regulate the production, supply, and distribution of petroleum products and natural gas, aiming to avert shortages triggered by escalating conflict in West Asia. The move prioritizes liquefied petroleum gas for households and establishes tiered allocations for natural gas amid disruptions to shipments through the Strait of Hormuz.

The decision stems from the ongoing war between the United States, Israel, and Iran, which began on February 28, 2026, with joint U.S.-Israeli strikes on Iranian targets over its nuclear program. Iran retaliated by blocking the Strait of Hormuz, a vital chokepoint for global energy flows, halting vessel movements and invoking force majeure clauses by suppliers. India relies on the Persian Gulf for over 60 percent of its liquefied petroleum gas needs, with nearly 90 percent of those imports passing through the strait. Approximately 30 percent of the country's natural gas also routes through this corridor. With domestic LPG inventories sufficient for only 25 to 30 days, officials warned of potential acute shortages without intervention.