Prime Minister Narendra Modi on Tuesday held a high-level meeting with Petroleum and Natural Gas Minister Hardeep Singh Puri and External Affairs Minister S. Jaishankar to review the country’s liquefied petroleum gas (LPG) supply situation in light of the ongoing conflict in West Asia.
The meeting focused on assessing potential disruptions to fuel supplies as the war involving Iran threatens key global energy routes.
Government invokes Essential Commodities Act
Earlier in the day, the central government invoked provisions of the Essential Commodities Act to regulate the production, supply and distribution of petroleum products and natural gas. The move is aimed at preventing shortages and ensuring equitable distribution of fuel across the country.
The government has instructed oil refineries and petrochemical units to maximise LPG production and divert critical hydrocarbon streams into the LPG supply pool to strengthen domestic availability.
Officials said the measure would help authorities maintain stable supply chains, prevent hoarding, and protect consumers from sudden fuel shortages.
Impact of the West Asia conflict
The government’s decision comes amid rising concerns that the ongoing conflict in the Middle East could disrupt shipments through the Strait of Hormuz, one of the world’s most important oil and gas transit routes.
According to a government notification, the conflict has already affected liquefied natural gas (LNG) shipments, with some suppliers invoking the force majeure clause due to disruptions in the region.
India currently consumes about 31.3 million tonnes of LPG annually, making uninterrupted supply critical for households and industries.
Priority allocation of natural gas
Under the revised allocation system, priority sectors will receive gas supplies first to maintain essential services.
The government has placed domestic piped natural gas for households, CNG for transport, and LPG production at the highest priority level. These sectors will continue to receive 100 percent of their average gas consumption over the past six months.
The fertiliser sector has been placed second in priority, with at least 70 percent of its recent gas demand guaranteed.
Industrial sectors, including tea processing, manufacturing, and other industrial users, will receive about 80 percent of their average gas consumption, depending on operational availability.
City Gas Distribution (CGD) networks supplying industrial and commercial consumers have also been included in the supply management plan.
GAIL to manage supply distribution
State-run energy company GAIL has been tasked with overseeing the implementation of the new supply priorities and managing natural gas distribution across sectors.
Officials said domestic gas production—currently meeting roughly half of India’s daily consumption of about 191 million standard cubic metres—may be redirected from less critical sectors such as petrochemicals and power generation to ensure uninterrupted supply to essential sectors.
The government said the measures are designed to safeguard India’s energy security and maintain stable fuel availability during a period of global uncertainty caused by geopolitical tensions in West Asia.
Originally published on 24×7-news.com.
