Government Increases Gas Supply To Fertiliser Plants Amid West Asia Tensions

By Kotak News Desk
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09 Apr 2026 at 11:00 AM IST
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Market News
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4 minutes read

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Summary

India raises gas supply to fertiliser plants to 95% of average use, boosts LPG and CGD allocations, and introduces reforms to ensure energy stability amid tensions in West Asia.

Amid the West Asia oil and gas crisis, the Government of India has decided to increase gas supply to fertiliser plants. As per the latest update, the gas supply will increase by 5% to 95% of their six-month average consumption. The announcement was made during an inter-ministerial briefing reviewing measures to maintain the country’s energy supply amid developments in West Asia.

Key Details Of The Briefing

As per the briefing, the priority sector continues to receive protected supplies, which include 100% allocation to Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) transport. Also, the total commercial Liquefied Petroleum Gas (LPG) allocation has increased to 70% of the pre-crisis level.

Apart from this, the City Gas Distribution (CGD) networks have also increased by 10%, and the daily availability of 5 kg LPG for migrant workers has been doubled. Additionally, CGD entities are advised to prioritise PNG connections for commercial establishments and on the other hand, companies like Indraprastha Gas Limited (IGL) are offering incentives to increase the speed of adoption.

New Orders & Structural Reforms

The briefing also mentioned the key structural reforms the government plans to introduce to expand its PNG structure. This will include directives from the Petroleum and Natural Gas Regulatory Board (PNGRB) to connect institutions such as schools, community kitchens, and hostels to nearby pipelines within 5 days.

The government further notified new orders under the Essential Commodities Act to expand the network and streamline pipeline approvals.

Public sector oil companies have stepped up efforts to increase adoption by organising nearly 1,600 awareness camps in the past few days. At the same time, a three-member panel of executive directors from Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited is working closely with state authorities and industry players to streamline the distribution of commercial LPG.

Source:

CNBC TV18

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