Ministry Of Petroleum: 100% Assured Supply Of Domestic Piped Gas To Homes And CNG For Vehicles.

New Delhi; March 2026: Amidst growing pressure on global fuel supplies due to the ongoing West Asia conflict, the Union Government today has invoked the Essential Commodities Act (EC Act) to safeguard the domestic energy market. According to the Petroleum Ministry, the government has

issued a control order directing refineries and petrochemical units to maximise the production of liquefied petroleum gas (LPG) and divert key hydrocarbon streams to the LPG pool to ensure an uninterrupted supply of cooking gas across the country.

The Petroleum Ministry stated that the invocation of the Act has established a clear priority list for natural gas distribution to manage current supply constraints. Under this new mandate, there is a 100% assured supply of domestic piped gas for homes and CNG for vehicles. Other sectors will face calibrated supply caps based on their previous 06 months average consumption. It is specifically, the tea industry, manufacturing units, and industrial consumers connected through the natural gas grid

will receive 80% of their average supply.

Similarly, industrial and commercial natural gas consumers are also capped at 80% of their previous 06 months average. Fertiliser plants have been allocated 70% of their previous 06 months average supply as the government rebalances resources. To facilitate this redirection, the Petroleum Ministry

confirmed a 35% cut in natural gas supply from refineries and petrochemical plants. These measures come as India, which typically sources 30% of its natural gas via the Strait of Hormuz, navigates the logistical challenges posed by the regional conflict.

To offset the current short supply, the Ministry noted that India is actively purchasing natural gas through alternative trade routes to maintain national energy security. Furthermore, for issues of LPG for restaurants, automobiles and other sectors, the Ministry of Petroleum has constituted a committee which will examine their requirements and try to provide some volumes to them. The government prioritised domestic LPG supply to households to ensure energy security for citizens amidst the ongoing uncertainty in the global oil and energy market due to West Asia crisis.

“In the 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”, the Ministry of Petroleum and Natural Gas announced on X. Furthermore, to manage the current supply environment, the ministry introduced a 25-day inter-booking period for consumers to avoid hoarding and prevent black marketing.

As the ongoing West Asia conflict has brought disruptions to the global supply chain on natural gas, hotel associations and restaurants across India are also facing the brunt of low supply, asking the Central government to ensure that an “uninterrupted supply” is ensured across the industry.

In Karnataka, hotel association leaders are facing problems and asking for government intervention. “We are forcing the Central government to bring the hotels under the Essential Commodities section. The government has ordered the oil companies to give commercial cylinders to health, agriculture, and education. How can hotel industry survive without cylinders? It is the main source for us”, said Santosh Malnad, Director Hotel Owners Association. “They should ensure the free flow of cylinders to hotel

industry, this is a very strong issue, so please interfere in this matter and make sure we get free flow of commercial cylinders. The government has cancelled the discount too, which was Rs 150 on 19 KG, and they also hiked the price by Rs. 145″, he added.

Tamil Nadu Traders Union Federation, has raised concern over the ongoing LPG shortage affecting hotels and small food businesses across Tamil Nadu. Speaking about the issue, Vikramaraja Raja said that the traders’ body has made a strong request to M. K. Stalin to intervene in the matter and urge the Government of India to resolve the gas supply shortage at the earliest. According to him, small traders and small hotels will be affected more severely than large hotels. Due to the limited supply, several eateries in Chennai and other parts of Tamil Nadu have already started reducing items on their menus while continuing operations with the available stock.

Domestic LPG cylinders continue to be supplied to households without interruption. Authorities have also extended the time limit for booking new cylinders. RK Gupta, the National Vice President of the LPG Association, has said that there is no shortage in the supply of domestic LPG. “According to the oil companies, there is no shortage in supply. Commercial LPG cylinders have not been issued since yesterday, but an exemption has been given to hospitals and educational institutions. There is

no shortage in the supply of domestic LPG”, Gupta said.

The Central government on Tuesday announced new rules for prioritising supply of natural gas, including LPG and PNG for use across the country, keeping in mind the shortage caused by the disruption of the global supply chain amid the West Asia conflict. “The Central Government, in order to ensure equitable distribution and continued availability of natural gas for priority sectors, considers it necessary to regulate production, sector-wise allocation and diversion of natural gas supplies, distribution, disposal, acquisition, use or consumption of natural gas, including LNG and re-gassified-LNG”, the notification by the Centre read.

Team Maverick.