Government Prioritizes Domestic Gas for LPG Amid Middle East Crisis

The government has revised its priority list for domestically produced natural gas in response to disruptions caused by the West Asia conflict. Now, LPG production units are prioritized alongside CNG and piped cooking gas, ensuring continuous supply amid import challenges. Fertilizer and industrial sectors face reduced allocations.

The government has issued a directive giving domestically produced natural gas to units manufacturing LPG, following disruptions in imports due to the conflict in West Asia. Previously, CNG and piped cooking gas were the top recipients of domestic natural gas.

A notification published late Monday announced that LPG is now a priority sector, requiring gas companies to meet 100% of its past six-month average demand before supplying other sectors. Fertilizer plants, placed second, will receive 70% of their needs, and industrial consumers are allocated 80%, subject to availability.

The realignment comes after US-Israeli military actions led to reduced maritime traffic through the Strait of Hormuz, impacting global energy markets. With local gas supplies reallocated, India's energy priorities aim to sustain household and vehicle fuel availability.

(With inputs from agencies.)