The Iran-US-Israel war has shut the Hormuz Strait, and that disruption has hit LPG and natural gas supply hard. Therefore, India’s Petroleum Ministry has now issued a clear priority list for natural gas allocation. If shortages deepen, the government has already fixed which sectors will receive gas first and how much each sector will get.
Sectors That Will Face No Gas Cut
The government said domestic users and essential sectors will face no shortage at all. So, these groups will receive 100% supply without any cut. This list includes piped natural gas for homes, CNG for cars, autos, and public transport, gas used for LPG production, and fuel needed to run pipelines. Since these sectors affect daily life directly, the government has placed them at the top. As a result, households will keep cooking, and commuters will keep moving without disruption.
Industry Will Take The Hit First
However, the central government will cut gas supply for industry-linked sectors. It will base those cuts on each sector’s past average usage. In other words, companies will receive only a part of what they used over recent months. The tea industry and other manufacturing sectors will get 80% of their six-month average consumption. Fertiliser companies will receive 70% allocation, while oil refineries will get 65%.
Why The Government Took This Step
The government took this decision because India imports a large share of its LPG needs. Most of that supply comes from the Middle East through the Hormuz Strait. Since the war has blocked that route, imports have stopped, and commercial LPG for hotels and restaurants already faces shortages. The hotel association has even warned that hotels in cities like Bengaluru may start shutting down if commercial gas does not arrive.
What India Is Doing Next
At the same time, the government wants to protect domestic LPG supply. So, it has ordered refineries to raise production. It has also increased the gap between domestic cylinder bookings from 21 days to 25 days to save stock. Meanwhile, the Petroleum Ministry says current LPG stock can last 40 days. It is also increasing alternative imports from countries like the US and Australia. Still, if the crisis continues, industry will suffer. Tea gardens may see lower production, and fertiliser companies may also face disruption. The government says it is watching the situation closely and will take more steps if needed.
