UPSC Prelims Practice Questions — Govt. invokes Essential Commodities Act for natural gas allocation

Q1. Under the Natural Gas (Supply Regulation) Order, 2026 notified by the Ministry of Petroleum and Natural Gas, the term 'Priority Sector-2' refers to which one of the following?

  • A. Domestic piped natural gas (PNG) and CNG (Transport) consumers, whose offtake is maintained at 100% of the past six months' average consumption
  • B. Fertiliser plants, which are to be ensured 70% of their past six months' average gas consumption, subject to operational availability
  • C. Tea industries, manufacturing and other industrial consumers supplied through the national gas grid, maintained at 80% of past six-month average consumption
  • D. LPG production (including LPG shrinkage) and pipeline compressor fuel requirements

Q2. Which one of the following sectors receives the highest tier of guaranteed allocation — pegged at 100% of the past six months' average consumption — under the Natural Gas (Supply Regulation) Order, 2026?

  • A. Urea and complex fertiliser manufacturing plants
  • B. Tea processing industries on the national gas grid
  • C. Domestic piped natural gas (PNG) supply to households
  • D. Ceramic and glass industrial consumers

Q3. Which of the following are correctly identified as belonging to 'Priority Sector-1' (100% offtake guarantee) under the Natural Gas (Supply Regulation) Order, 2026?

  1. Compressed Natural Gas (CNG) for the transport segment
  2. Fertiliser manufacturing plants
  3. LPG production, including LPG shrinkage requirements
  4. Pipeline compressor fuel and other essential pipeline operational requirements
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q4. How many distinct sectoral priority tiers does the Natural Gas (Supply Regulation) Order, 2026 establish for allocating domestic natural gas?

  • A. Two tiers
  • B. Three tiers
  • C. Four tiers
  • D. Five tiers