Natural Gas rationing begins from March 9: Will PNG, CNG and LPG supply to households be affected?

The government has announced rationing of natural gas after liquefied natural gas (LNG) supplies were disrupted due to the ongoing conflict in the Middle East, according to a notification issued by the Ministry of Petroleum and Natural Gas.

The notification has been issued under the Essential Commodities Act, 1955, and came into effect from March 9, 2026. The move is aimed at ensuring that essential sectors and household consumers do not face shortages amid disruptions in global energy supplies.

Officials said the order will remain in force while the government monitors the evolving energy supply situation.

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Priority sectors to get higher gas allocation

Under the order, priority sectors such as domestic piped natural gas (PNG), compressed natural gas (CNG), fertiliser plants, LPG production units and the tea industry will receive preferential allocation of natural gas.

Domestic PNG and CNG segments, along with LPG production units, will receive gas equivalent to 100 per cent of their average consumption.

Fertiliser plants will receive around 70 per cent of their average gas requirement, while other priority sectors, including city gas distribution networks, will receive about 80 per cent of their average gas requirement.

Officials said the objective is to ensure an uninterrupted supply of gas for domestic use, fertiliser production and other essential services.

Supply diversion from non-priority sectors

To meet the requirements of priority sectors, gas supplies to non-priority industries will be curtailed. These include petrochemical plants, power generation units and refineries, from where gas will be diverted to sectors considered critical.

The order will override existing gas supply contracts, and the force majeure clause will apply during the implementation of the rationing mechanism. State-run GAIL and the Petroleum Planning and Analysis Cell (PPAC) have been tasked with monitoring and implementing the gas allocation system.

Government moves to secure LPG supply

The government has also taken steps to monitor and secure the supply of LPG cylinders across the country. In view of possible shortages, a rationalisation order has been issued for LPG supply. Oil marketing companies (OMCs) have formed a committee comprising three executive directors to monitor the distribution and availability of LPG cylinders.

The committee will review supply levels, distribution and inventory to ensure smooth availability of LPG for consumers.

Re-booking period extended to curb hoarding

To prevent hoarding and black marketing of LPG cylinders, the government has extended the re-booking timeline for LPG cylinders from 21 days to 25 days.

Government sources said there were instances where consumers who earlier booked cylinders every 55 days had started placing bookings within 15 days. Officials said the move is intended to ensure that LPG cylinders remain available for genuine household consumers.

The government has also directed oil refineries to increase LPG production and ensure that the additional output is used for domestic consumption.

Fuel supply stable, petrol-diesel prices unlikely to rise

Government sources said petrol and diesel prices in India are unlikely to increase unless crude oil prices cross USD 130 per barrel. They said the country has adequate fuel stocks and there is no shortage of petrol or diesel at fuel stations.

Sources also said India has sufficient stocks of aviation turbine fuel (ATF) and there is no need for concern regarding its availability.

The government is also exploring additional LPG supply sources, with countries such as Algeria, Australia, Canada and Norway showing interest in supplying LPG to India.

States review supply situation

Meanwhile, state governments have begun reviewing the fuel supply situation. In Madhya Pradesh, the Chief Minister is expected to hold a review meeting on the availability of LPG and CNG.

Officials said the state government may also discuss measures to curb unnecessary consumption of CNG, as well as petrol and diesel. In Rajasthan, a meeting of senior officials is also expected later in the day to review the fuel supply situation and assess preparedness to handle any possible shortages.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India continues to receive uninterrupted energy imports through routes that are not impacted by the conflict. He said the government is taking necessary steps to ensure the availability of energy supplies for citizens despite the ongoing geopolitical challenges.

LPG Shortage Hits Restaurants

Restaurants in Maharashtra and Karnataka are facing difficulties due to a shortage of LPG cylinders after supply cuts that began on Sunday, industry representatives said. Currently, around 10–20 per cent of restaurants are facing supply issues, but industry leaders warned the situation could worsen in the next two days if LPG availability does not improve.

They said restaurants may be forced to shut operations as LPG is the primary fuel used in commercial kitchens. Industry representatives estimated that if the shortage continues, many restaurants in Mumbai could face closures in the coming days. The India Hotels and Restaurant Association has written to the government seeking urgent intervention to address the supply disruption.

According to industry sources, rising panic demand from domestic consumers has also increased pressure on LPG supplies. The delivery timeline for LPG cylinders has increased from around 15 days earlier to nearly 25 days, further affecting commercial users. Market participants said stocks such as Jubilant FoodWorks, Restaurant Brands Asia, Eternal, and Swiggy may remain in focus amid the developments.