The rally follows the government’s issuance of the Natural Gas (Supply Regulation) Order, 2026, which seeks to prioritise gas allocation to essential sectors amid supply disruptions triggered by the ongoing conflict in the Middle East. The move also comes amid rising demand and concerns over a potential cooking gas shortage due to the war in West Asia involving the US, Israel, and Iran.
According to the government notification, natural gas supply will be prioritised for domestic piped natural gas consumers and compressed natural gas used in transport. Allocations will be maintained at 100% of the average consumption over the past six months, subject to operational availability.
The company said the government’s move would help safeguard essential energy supplies for households and the transport sector.
“The Company appreciates the Government’s prompt efforts in bringing out the said Order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” it said.
The company also said some of its gas suppliers have curtailed supplies due to escalating geopolitical tensions in West Asia, affecting its ability to serve certain industrial customers. The city gas distributor noted that the disruption has reduced the availability of gas for industrial supply.
The government order also directed all entities involved in the production, import, marketing, transportation, and supply of natural gas, including producers, LNG terminal operators and city gas distributors, to comply with revised supply schedules and sector-wise allocations coordinated through GAIL (India) Limited and the Petroleum Planning and Analysis Cell.Due to supply constraints arising from the closure of the Strait of Hormuz, gas prices have risen in India. Domestic cooking gas prices have increased by Rs 60 per cylinder, while commercial LPG prices have gone up by Rs 114.5.
The development is significant as India is the world’s second-largest LPG importer. Several restaurants across the country have run out of gas supplies or switched to simpler menu items that require little to no cooking gas.
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