India Revises Natural Gas Allocation Priority
Analysis based on 16 articles · First reported Mar 10, 2026 · Last updated Mar 10, 2026
The revised gas allocation by India is expected to stabilize domestic energy markets by prioritizing essential sectors, potentially leading to increased stability in prices for LPG, CNG, and piped cooking gas. However, petrochemical plants and power units may face operational challenges due to reduced gas supplies, which could impact their production and profitability.
Amidst disruptions to imported gas supplies caused by the widening West Asia conflict, India's government has revised the priority order for allocating domestically produced natural gas. LPG production, CNG for transport, and piped cooking gas are now at the top of the priority list, receiving 100% of their average past six-month consumption. The fertilizer sector is second, receiving at least 70% of its demand. Tea industries, manufacturing, and other industrial consumers are third, receiving 80% of their consumption, followed by city gas distribution entities supplying industrial and commercial consumers at 80%. To meet these priorities, gas supplies to petrochemical plants (including those of Oil and Natural Gas Corporation and Reliance Industries), power units, and high-priced gas consumers will be curtailed. GAIL (India) has been tasked with managing these supplies.
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