Why is it in the news?
India has directed refiners to increase LPG production under the Essential Commodities Act amid global energy uncertainty.
The decision follows disruptions in oil supply routes due to tensions in West Asia.
Category: Polity
Important Points:
● The Essential Commodities Act was enacted in 1955 to ensure availability of essential goods at fair prices.
● It aims to prevent hoarding, black marketing and artificial shortages.
● Under Section 3, the Central Government can regulate production, supply and distribution of essential commodities.
● The government can impose stock limits, fix prices and control trade.
● Section 5 allows the Centre to delegate powers to state governments.
● Petroleum products including LPG are classified as essential commodities under the Act.
● The government directed refineries to maximise LPG production.
● Refineries were restricted from diverting propane and butane streams to petrochemical production.
● The Act was amended in 2020 to limit regulation of certain food commodities to extraordinary situations.