New Delhi has also directed refineries to boost production as the Middle East conflict disrupts supplies through the Strait of Hormuz

India has invoked special legislation to ensure adequate gas supplies, which have been disrupted due to the escalating Middle East conflict.

The federal government on Tuesday brought into play the Essential Commodities Act (ECA) to ensure domestic cooking gas supplies for its 1.4 billion population.

The primary objective of the ECA is to protect consumers from unreasonable price spikes and artificial shortages, giving the government powers to regulate production, storage, and transportation of commodities.

The Middle East conflict triggered by the US-Israeli attacks on Iran and the latter's retaliation has resulted in shipping activities coming to a virtual halt through the Strait of Hormuz. New Delhi imports 85% of its oil and nearly half of its natural gas.

About half of the country's oil supplies and 55% of liquefied natural gas (LNG) shipments areroutedthrough the vital Strait of Hormuz. The region accounted for about 55% of India's crude imports, or about 2.74 million barrels per day as of January.

The federal government hasdirectedrefineries and petrochemical units to increase production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool, the Economic Times reported.

Oil refining companies have been directed to absorb the impact of LNG supply disruption to the extent feasible.

The development comes as rising energy costs and supply constraints have forced hotels and restaurants in major cities, includingBengaluru, the country's software hub, and Mumbai, the financial capital, to announce that operations would be halted or scaled down from Tuesday, according to reports.

Most restaurants havestorage capacityavailable to stock only two to three days of inventory, and hence supply disruptions could quickly impact operations, industry representatives told the PTI news agency.

The Oil Ministry has formed a committee to examine supply issues after a sudden shortage of cooking gas cylinders created panic in the hospitality industry.

(RT.com)