Why in the News
The Government of India invoked the Essential Commodities Act, 1955 to direct oil refiners to maximise production of Liquefied Petroleum Gas (LPG) and prioritise domestic cooking gas supply amid disruptions in global energy supply chains.
| About Essential Commodities Act, 1955 (ECA)The Essential Commodities Act, 1955 (ECA) is a law enacted by the Government of India to ensure the availability of essential goods to consumers at fair prices and prevent hoarding, black marketing, and artificial scarcity.Amendment and Reforms (2020)In 2020, the government introduced reforms to liberalise agricultural markets.Key changes:Cereals, pulses, oilseeds, edible oils, onions, and potatoes were removed from the list of essential commodities under normal circumstances.Stock limits can be imposed only under extraordinary situations such as: War, Famine, and Extraordinary price rise. |
Key Government Directive
- All oil refining companies must use propane and butane streams primarily for LPG production.
- Refiners are not allowed to divert propane or butane for:
- Petrochemical products
- Other downstream industrial uses.
- LPG produced must be supplied to public sector oil marketing companies.
Major public sector oil marketing companies include:
- Indian Oil Corporation Limited
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- These companies will distribute LPG only to domestic consumers.
| [2010] Consider the following statements: The Union Government fixes the Statutory Minimum Price of sugarcane for each sugar season. Sugar and sugarcane are essential commodities under the Essential Commodities Act. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
