The move comes amid rising tensions in the Hormuz Strait following joint attacks on Iran by the United States and Israel.
India Prioritizes Gas Supply for Households, Industries Amid West Asia Crisis
The central government has revised domestic natural gas allocation to ensure essential sectors receive supply amid disruptions from conflicts in West Asia. LPG production, CNG for vehicles, and piped domestic gas (PNG) now top the priority list. These sectors will receive gas based on 100 percent of their average consumption over the past six months.
The move comes amid rising tensions in the Hormuz Strait following joint attacks on Iran by the United States and Israel, and Iran’s retaliatory actions. Maritime traffic through the strait has declined, causing volatility in energy markets. Approximately one-fifth of global seaborne oil trade and about one-third of liquefied natural gas supply pass through this route. Suppliers have invoked force majeure provisions, which apply when contracts cannot be fulfilled due to extraordinary or uncontrollable circumstances.
The new priority order for domestic gas allocation is:
- LPG, CNG, PNG: 100 percent of six-month average consumption
- Fertilizer production: at least 70 percent of six-month average consumption
- Industrial sectors including tea, manufacturing, and other industries: approximately 80 percent of six-month average consumption
- Urban gas distribution companies serving commercial and industrial consumers: based on operational availability
India’s domestic gas production currently meets about half of the country’s daily requirement of 19.1 million standard cubic meters. To maintain supply to priority sectors, reductions may be applied to petrochemical plants, power units, and high-priced gas buyers.
GAIL India Limited will manage gas supply according to the new priorities, while pipeline compressors and related infrastructure are also included in the top priority category to ensure uninterrupted operation.
The government said the revised allocation aims to balance resources and maintain consistent gas supply to critical sectors.
