{"id":"f-73cd9b4b27-f81ac5f8-22a8-5b0c-99fc-2997c8e358b3","title":"Gas Rationing: How Govt plans to ensure gas supplies amid West Asia crisis","description":"Amid West Asia tensions, India faces a natural gas supply crunch, leading to nationwide rationing. The government’s new Natural Gas (Supply Regulation) Order prioritizes essential services like domestic PNG/CNG, while industrial sectors face significant supply cuts.","timestamp":1773133345,"category":"national_v_two","headline":"Gas Rationing: How Govt plans to ensure gas supplies amid West Asia crisis","modifiedHeadline":"West Asia war: Govt’s plan to ensure gas supplies","subCategories":["scid_2c0dc4ac"],"subcategoriesName":["Economics News"],"region":"IN","bundleMetaData":{"bundleId":"c80449a0-0ad6-472b-8d17-5747dd8f5c83","bundleTitle":"Around the globe","cardData":null},"iabCategoryId":"386","fcSummary":"india faces natural gas shortages due to rising west asia tensions and supply disruptions from gulf countries. the government implemented a rationing system prioritizing essential services like city gas distribution and domestic use. industries face supply cuts, impacting production, while gas prices fluctuate amid geopolitical developments and potential reserve releases.","summary":"Amid disrupted gas supplies due to the Iran war, the Centre implemented a natural gas rationing system that prioritises domestic and essential needs.","ctaUrl":"https://trends.glance.com/newz/astrology/IN/en/news9/f-73cd9b4b27-f81ac5f8-22a8-5b0c-99fc-2997c8e358b3","sourceUrl":"https://www.news9live.com/business/biz-news/gas-rationing-how-govt-plans-to-ensure-gas-supplies-amid-west-asia-crisis-2941309","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/P_LQhYIC7960.webp","content":"

New Delhi: Amid the rising tensions in West Asia, the energy supplies have been hit which has put pressure on the supply of natural gas in India. To tackle

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the situation, the Centre has taken emergency steps and implemented a strict nationwide natural gas rationing system. The government has implemented the Natural Gas (Supply Regulation) Order, under which limits have been set for gas supply to different sectors so that gas is adequately available for essential services.

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India’s Gas Rationing System: Prioritizing Domestic & Essential Energy

The US-Israel and Iran war has forced several international suppliers to invoke the force majeure clause. As a result, LNG supplies coming from these Gulf countries have been affected, increasing pressure on gas availability in India. Taking stock of the situation and in an attempt to stop the situation getting out of control, the government has decided to regulate gas distribution for industries and other sectors.

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According to the government order, Gas Authority of India Limited (GAIL) will control the supply of natural gas in the country and implement the new arrangement. Meanwhile, the Petroleum Planning and Analysis Cell (PPAC) has been entruested with the duty to determine the pooled price of gas. This order will also apply to all existing Gas Sale Agreements (GSA) and commercial contracts.

Keeping the public at the forefront of its strategy, the government has given priority to domestic gas and city gas distribution systems. The essential sectors such as PNG, CNG, and LPG production will receive full supply. The new system will ensure that gas is allocated to different sectors based on their average consumption over the last six months.

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Domestic PNG, CNG, LPG production, and pipeline compressor fuel: 100% supply
Tea industry, manufacturing, and other industrial consumers: 80% supply
Fertiliser production: 70% supply
Oil refineries, petrochemical plants, and power plants: 65% supply

The industries which are dependent on such energies have been impacted the most. Several sectors are facing a 20% to 35% cut in gas supply. The ceramic industry in Gujarat has been hit hard as many units have reduced production or are looking for alternative fuels.

Experts are saying that until US-Iran war ends, and energy supplies through the Strait of Hormuz return to normal, pressure on gas supply may continue.

Meanwhile, US natural gas futures declined to around $3.08 per MMBtu on Tuesday. The prices marked a second straight session of losses as supply disruption concerns eased.

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Also, G-7 finance ministers signaled readiness to release strategic oil reserves if required. In an important update, US President Donald Trump indicated the ongoing conflict with Iran could be nearing its end.

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Gas Rationing: How Govt plans to ensure gas supplies amid West Asia crisis

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