Introduction
The LPG Control Order was made by the Ministry of Petroleum & Natural Gas on 26 April 2000 under Section 3 of the Essential Commodities Act, 1955 and enforced w.e.f. 24-05-2000. Its objective is to regulate the supply, distribution, storage, transport and use of liquefied petroleum gas (LPG) in cylinders or in bulk across India. By doing so it seeks to ensure adequate availability, prevent hoarding, unfair trade practices, and protect consumers. The Order extends to the whole of India. The Order repealed the earlier 1993 version of the LPG Control Order, subject to savings.
Domestic subsidised connections are supplied in sealed cylinders of 14.2 kg or 5 kg capacity (as amended). The Order has undergone several amendments since 2000, notably to introduce 5 kg cylinders and modify display requirements, but the core regulatory framework remains as described.
Section 1 – Short title, extent and commencement
- Clause 1(1): The Order may be called the Liquefied Petroleum Gas (Regulation of Supply & Distribution) Order, 2000.
- Clause 1(2): It extends to the whole of India.
- Clause 1(3): It comes into force on the date of its publication in the Official Gazette.
Significance: Establishes the formal title, territorial coverage and commencement date; a standard opening for regulatory orders. It means all parts of India are covered and the Order becomes operative from its gazette notification (24-05-2000).
Section 2 – Definitions
This section is critical because it defines key terms used throughout the Order. Some of the important defined terms include:
- “Chief Controller of Explosives” (as per the Explosives Act)
- “Consumer” means a registered person, firm, company, institution, cooperative society, association of persons or organisation who has been granted an LPG connection or supply, in bulk or cylinder, by a distributor or a Government Oil Company or a parallel marketer.
- “Cylinder” means a metal container utilised for storing LPG conforming to the specifications laid down in Schedules II & III.
- “Distributor” means a person, firm, association or company, etc, appointed by a Government Oil Company or parallel marketer and engaged in purchase, sale or storage for sale of LPG in cylinders to consumers, etc.
- “Parallel marketeer” and “parallel marketing system” (i.e., system outside the public distribution system)
- “Public distribution system” means the system of distribution, marketing or selling of LPG by a Government Oil Company at a Government-controlled or declared price through a distribution system approved by the Central or State Government.
- Others: “pressure regulator”, “seal”, “storage point”, “transporter”, etc.
Significance: Clear definitions avoid ambiguity in regulatory compliance and enforcement. For example, knowing what constitutes a “consumer” or “distributor” helps determine who is subject to the obligations and who can be held liable for contraventions.
Section 3 – Restriction on unauthorised possession, supply and consumption of LPG
This section lays down core prohibitions and restrictions. Key provisions:
- Clause 3(1)(a): A person having a connection under the public distribution system shall not possess more than one connection of LPG.
- Clause 3(1)(b): A person shall not possess or use LPG filled in a cylinder or in bulk unless he has received the supply from a Government Oil Company or a distributor authorised by such Company.
- Clause 3(1)(c): A person shall not use LPG for any purpose other than for which the consumer is registered with the distributor. (However, the Central Government may permit other uses by order.)
- Clause 3(2): Supply to domestic category consumers shall be in 14.2 kg capacity cylinders; for non‐domestic category 19 kg/47.5 kg capacity (or as notified).
- Clause 3(3): No distributor of a Government Oil Company shall supply LPG in cylinder to any person unless he is registered and granted a connection under the public distribution system (or holds a valid authorisation).
- Clause 3(4): No distributor or parallel marketer shall commit or cause to commit any of the prohibited activities listed in Schedule-I.
Significance:
This section ensures controlled distribution, prevents multiple connections misused for speculation, restricts unauthorised possession, and sets size standards of cylinders. It helps curb diversion of subsidised LPG and prevents misuse.
Section 4 – Restriction on storage and transport of LPG
Section 4 imposes strict rules on how LPG cylinders and containers may be filled, transferred, stored and transported:
- Clause 4(1)(a): No person shall fill any cylinder with LPG or transfer LPG from one cylinder/container to another unless authorised by the Chief Controller of Explosives.
- Clause 4(1)(b): No one shall transport or store a cylinder filled with LPG except in an upright position.
- Clause 4(1)(c): Storage or use of a filled cylinder must be in a cool, dry, well-ventilated and accessible place under cover, away from boilers, open flame, steam pipes or heat sources.
- Clause 4(1)(d): Removal of the seal prior to use of the cylinder is prohibited, except authorised persons may remove the seal in the presence of the consumer for test/check/install.
- Clause 4(1)(e): Use of cylinders, pressure regulators and gas cylinder valves other than those specified in Schedules II & III is prohibited.
- Clause 4(2): No transporter or delivery person shall deliver LPG either in cylinder or bulk to any person other than the consumer or distributor.
Significance: Safety is central here. LPG is a flammable, pressurised product and improper handling/storage/transportation can lead to accidents. These obligations ensure safety protocols, authorised transfers only, and proper equipment use.
Section 5 – Restriction on sale or distribution of LPG below or in excess of the standard weight
Section 5 specifies that no Government Oil Company, distributor or parallel marketer shall supply, sell or distribute to a consumer a cylinder of LPG which contains less than or in excess of the weight specified in Schedules II & III or as indicated on the cylinder.
Significance: Protects consumers from short-changing (less weight), and prevents over-delivery (which may imply misuse or conversion to non-domestic use). Ensures uniformity and consumer trust.
Section 6 – Prohibition on carrying on unauthorised business of selling LPG
Section 6 prohibits any person other than a Government Oil Company, a parallel marketer or a distributor from engaging in the business of selling LPG to the consumer.
Significance: Creates a controlled licensing regime. Prevents unregulated sale/distribution (which may lead to safety and quality issues, diversion of supply, unfair competition).
Section 7 – Possession, supply or sale of LPG equipment
This section prohibits any person from supplying or selling a filled or empty cylinder, gas cylinder valve, or pressure regulator to any person other than a Government Oil Company or a parallel marketer, unless that equipment conforms to Indian Standard specifications.
Significance: Ensures quality of equipment used in LPG supply chain, safety integrity, and prevents sub-standard equipment entering market (which again is a safety hazard and undermines consumer protection).
Section 8 – Display of stock and price of LPG
Section 8 mandates that every distributor shall permanently display at a conspicuous place in their business premises (including storage point):
- the opening balance of filled, empty and defective cylinders and regulators;
- the backlog of preceding working day of the filled cylinders to be supplied.
Significance: Enhances transparency in the distribution process. Helps prevent hoarding, favouritism, under-supply, and empowers consumers and regulators with visibility into supply status.
Section 13 – Power of entry, search and seizure
Under Section 13:
- An authorised officer (of Central or State Government not below the rank of inspector or officer of a Government Oil Company) may stop & search any vessel or vehicle used for transporting or storing LPG, enter and search any place, and seize stocks of LPG, cylinders, valves, regulators and seals in respect of which there is reason to believe a contravention of the Order has been or is being committed.
- Similarly, the sales officer of a Government Oil Company is authorised for this purpose in respect of compliance by distributors or consumers.
Significance: Enforcement mechanism. Without investigatory and seizure powers, regulatory orders would be ineffective. This helps deter non-compliance, enables detection of irregularities and supports regulatory oversight.
Section 14 – Overriding effect of the Order
Section 14 provides that the provisions of the Order shall have overriding effect notwithstanding anything contained in any order made by a State Government or a Union Territory Administration.
Significance: Affirms federal supremacy of the Central Government’s regulation in this field (under the Essential Commodities Act). Helps avoid conflicts between State and Central laws/regulations.
Section 15 – Power to exempt
Under Section 15 the Central Government may, if it considers necessary for avoiding hardship or in the public interest, by notification in the Official Gazette, exempt any person or class of persons from all or any of the provisions of this Order, either generally or for a specific purpose, subject to conditions as may be specified.
Significance: Provides flexibility and administrative discretion. It allows handling of exceptional cases (for instance remote areas, special consumer categories) where strict application might cause undue hardship.
Section 16 – Repeal and savings: Section 16 repeals the earlier LPG Order (1993) while preserving rights, obligations, penalties, investigations, etc. that arose under the earlier Order.
Significance: Legal housekeeping – ensures transitional continuity without legal vacuum, provides that previous actions remain valid, and prevents impunity for prior contraventions.
Penal Provisions:
The LPG Order, 2000, issued under Section 3 of the Essential Commodities Act, 1955 (EC Act), contains no separate penal clauses. Any contravention of its provisions is therefore punishable under Section 7 of the EC Act as follows:
General violations (Section 7(1)): Imprisonment up to 3 years, or fine, or both. This applies to most breaches such as unauthorised possession or use, multiple connections, improper storage/transport, under-weight or over-weight supply, unauthorised refilling, or non-display of stock/price.
Aggravated violations involving hoarding, black-marketing, or large-scale diversion of subsidised LPG:
Section 7(1A): Minimum imprisonment of 6 months extending up to 7 years, along with fine.
Additional consequences (Section 7(2) & 7(3)): Forfeiture of seized LPG, cylinders, vehicles, or equipment; on second or subsequent conviction, mandatory prohibition from carrying on business in LPG for at least 6 months.
In practice, minor infringements (e.g., short-weight delivery) are often settled with fines or short terms, while serious cases of commercial diversion or safety violations attract longer imprisonment and forfeiture.
Schedules (Schedules I, II, III)
Although technically outside the numbered “Sections”, the Schedules form part of the Order and are important:
- Schedule I lists “Prohibited Activities” (for example forced sale of stove/hotplates to the consumer) that are not permitted under the regulated LPG distribution framework.
- Schedule II & III specify the standard capacities, weights, specifications of cylinders, valves, pressure regulators and other equipment. They ensure uniformity of equipment and containers used in the LPG distribution business. It is essential for distributors, equipment manufacturers and regulators to refer to the Schedules for compliance.
Key Implications for Stakeholders
- Consumers: The Order ensures protection from multiple connections, ensures weight and equipment standards, assures transparency (stock & price displays) and restricts unauthorised supply.
- Distributors/Government Oil Companies: They must comply with registration requirements, cylinder specifications, display obligations, maintain proper weights, abide by storage, transport and safety norms, and are subject to search/seizure.
- Parallel Marketeers: Must also comply with the system outside the public distribution; abide by import/storage/distribution norms, monthly returns (where applicable) and conform to quality and safety provisions.
- Regulators: The Order empowers enforcement officers with search, seizure and inspection powers; creates central Government’s overriding authority; and allows for exemptions in special cases.
- Equipment manufacturers/suppliers: Must conform cylinders, valves, regulators to IS/Indian Standards, cannot supply to unauthorised persons, etc.
Challenges & Considerations
- Administrative enforcement: Practical enforcement of transport/storage restrictions, cylinder specifications, search and seizure require strong monitoring mechanisms.
- Parallel marketing vs subsidy: Ensuring that LPG meant for subsidised public distribution is not diverted; controlling multiple connections remains a challenge (Clause 3).
- Remote/disadvantaged areas: The exemption power (Section 15) becomes relevant but must be applied carefully to avoid misuse.
- Technological/equipment updates: As LPG technology evolves, equipment standards (Schedules II & III) may require amendment, which involves regulatory updates.
- Coordination with State Governments: Although overriding, practical implementation involves state machinery (inspection, licensing, storage regulation), so cooperation is key.
Conclusion
The LPG Control Order of 2000 is a comprehensive regulatory instrument designed to govern all facets of LPG supply, distribution, equipment, safety, transport, storage and consumer protection in India under the Essential Commodities Act framework. Its sections systematically address definitions, restricted activities, equipment standards, transparency obligations, enforcement and transitional provisions. For any stakeholder in the LPG sector—consumers, distributors, marketers, regulators or equipment suppliers—understanding the Order is vital for compliance and proper functioning of the LPG ecosystem.
