10 March,2026 03:21 PM IST | New Delhi | mid-day online correspondent
Pic/AFP
The Centre has revised the priority order for allocating domestically produced natural gas amid disruptions to imported supplies caused by the escalating West Asia conflict. Under the new framework, the government has placed LPG production, compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for household cooking at the top of the allocation list, reported news agency PTI.
The revised order, issued through a gazette notification, aims to ensure uninterrupted supply of cooking fuel and transport gas as global energy markets face volatility due to the ongoing geopolitical tensions in the Middle East.
According to the notification, the supply of natural gas for domestic PNG connections, CNG used in transport and LPG production will now receive the highest priority, reported PTI.
These sectors will be supplied 100 per cent of their average gas consumption over the past six months, ensuring that household cooking fuel and transport needs remain unaffected despite global supply disruptions.
Pipeline compressor fuel and other operational requirements of gas pipelines have also been included in this top-priority category, as uninterrupted gas supply is essential for maintaining pipeline operations, reported PTI.
The revised allocation aims to safeguard critical energy needs of households and the transport sector while managing limited domestic gas supplies.
Under the revised policy, fertiliser plants have been placed second in the priority list.
The government said these facilities will receive at least 70 per cent of their average natural gas consumption recorded over the past six months, subject to operational availability.
Authorities clarified that gas allocated to fertiliser plants must be used strictly for fertiliser production and cannot be diverted to other purposes or transferred between units, reported PTI.
Ensuring steady gas supply to fertiliser units is considered crucial for maintaining agricultural productivity and supporting the country's food security.
The third priority category includes tea industries, manufacturing units and other industrial consumers connected to the national gas grid.
These sectors will receive around 80 per cent of their average gas consumption over the past six months, depending on operational availability.
Industrial and commercial consumers supplied through city gas distribution networks have been placed in the fourth priority category and will also receive up to 80 per cent of their average gas usage, reported PTI.
The revised supply structure aims to maintain industrial operations while prioritising essential sectors.
To maintain supplies for priority sectors, the government has decided to divert domestic natural gas by reducing allocations to certain industries.
Gas supply to petrochemical facilities such as those operated by ONGC Petro additions Limited, GAIL (India) Limited's Pata Petrochemical Complex and Reliance Industries's oil-to-chemicals (O2C) operations may be curtailed, reported PTI.
High-pressure and high-temperature gas consumers and some power plants could also face reduced allocations depending on availability.
Additionally, refineries may see their natural gas allocation reduced to roughly 65 per cent of their average consumption over the past six months, with oil refining companies expected to absorb part of the impact of supply disruptions.
The decision to revise the gas allocation order follows disruptions in liquefied natural gas (LNG) shipments caused by the intensifying conflict in West Asia.
Following recent military strikes and retaliatory attacks involving Iran, maritime traffic through the Strait of Hormuz has declined sharply.
The waterway handles roughly one-fifth of the world's seaborne oil shipments and nearly one-third of global LNG trade, making it a critical energy corridor for many countries, including India, reported PTI.
Since a large portion of India's LNG and LPG imports transit through this route, disruptions in tanker movement have raised concerns about energy supplies.
Officials said the revised gas allocation system is intended to maintain stable supplies of natural gas while ensuring equitable distribution among sectors.
The government noted that the ongoing conflict in the Middle East has led to disruptions in LNG shipments, with some suppliers invoking force majeure clauses, reported PTI.
To implement the revised priority order, state-run gas utility GAIL (India) Limited has been tasked with managing natural gas distribution across sectors and ensuring compliance with the allocation framework.
The move is part of broader efforts by the government to secure essential energy supplies for households, transport and critical industries during a period of heightened global energy uncertainty.
(With inputs from PTI)
