Amid supply concerns, govt issues natural gas regulation order; PNG, CNG, fertiliser get priority

The order seeks to ensure fair distribution of gas in the wake of Liquefied Natural Gas (LNG) shipment disruptions

Amid disruptions to liquefied petroleum gas (LPG) supply transiting the Strait of Hormuz --through which the bulk of India’s imports pass -- the government has issued the Natural Gas (Supply Regulation) Order, 2026, invoking the Essential Commodities Act, 1955.

The order seeks to ensure fair distribution of gas in the wake of disruptions in global supplies.

The Ministry of Petroleum and Natural Gas notified the Natural Gas (Supply Regulation) Order, 2026 on March 9 to secure uninterrupted availability of domestic cooking gas.

According to the order, the central government took the step after assessing that the ongoing conflict in the Middle East that has resulted in the disruption of liquefied natural gas (LNG) shipments and that several suppliers have invoked force majeure clause.

The order states that the supply of natural gas to certain sectors shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent of their average past six-month average gas consumption. These sectors include: domestic piped natural gas supply; compressed natural gas for transport; LPG production including LPG shrinkage requirements; pipeline compressor fuel and other essential pipeline operational requirements.

It further states that supply of natural gas to the fertilizer plants shall ensure seventy per cent of their past six-month average gas consumption, subject to operational availability. It has also asked gas marketing entities to ensure that gas supply to tea industries, manufacturing and other industrial consumers supplied through the national gas grid is maintained at eighty per cent of their past six-month average gas consumption subject to operational availability.

The Ministry of Petroleum and Natural Gas has issued the Natural Gas (Supply Regulation) Order, 2026, invoking the Essential Commodities Act to ensure uninterrupted supply of domestic cooking gas amid disrupted LNG shipments through the Strait of Hormuz pic.twitter.com/Fj9tv7rEPp

— IANS (@ians_india) March 10, 2026

Meanwhile, the ministry has also issued orders to oil refineries to increase LPG production and directed that such additional output be channelled specifically for domestic use.

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," it said on X.

"The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing. Non domestic supplies from imported LPG is being prioritised to essential non domestic sectors such as Hospitals and Educational institutions," it said on Monday.

"For LPG supply to other non-domestic sectors, a committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the ministry stated.