Essential Commodities Act: When and why did Centre invoke it last? Premium
The Hindu
Essential Commodities Act, 1955 (ESA) has been a tool used by the government through the years to offset rising food prices, prevent hoarding and maintain food security
Story so far: In the wake of the oil crisis triggered by the Israel-U.S. strikes on Iran, Centre has invoked the Essential Commodities Act, 1955, on Friday (March 5, 2026), ordering all oil refining companies to maximise production of Liquified Petroleum Gas (LPG) and make it available to domestic consumers only.
Naming public Oil Marketing Companies (OMCs) — IndianOil, Hindustan Petroleum and Bharat Petroleum, which supply gas to 99% of domestic households in India, the Centre’s order highlights the ‘need to prioritise the utilisation of Propane and Butane streams for LPG production’ to maintain adequate gas availability. The order prohibits the companies from using propane or butane streams for manufacturing other petrochemical products and orders the OMCs to supply solely to domestic consumers.
The order invokes clauses 3 and 5 of the Essential Commodities Act which empowers the Centre to regulate production levels of Oil refining companies and set supply limits for OMCs. The order is in force with immediate effect and will remain so until further orders.
The Essential Commodities Act, 1955 (ESA) has been a tool used by the government through the years to offset rising food prices, prevent hoarding and maintain food security.
In 2020, Parliament amended the Act to limit the Centre’s powers to regulate cereals, pulses, potato, onions, edible oilseeds and oils only under extraordinary circumstances such as war, famine, extraordinary price rise and natural calamity of grave nature. It also stipulated regulating stock limit of any agricultural produce only in case of a 100% rise in retail price of horticultural produce or 50% increase in retail price of non-perishable agricultural foodstuffs.
However, the Centre has invoked the ESA five times since then, imposing stock limits on cereals and wheat, sugar exports, citing the need to rein in food prices and maintain domestic needs.
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