India's gas distribution sector is beginning to feel the impact of the ongoing geopolitical tensions in West Asia, with Mahanagar Gas Limited announcing an immediate withdrawal of all support schemes and subsidies for its commercial customers.
In a public notice issued to commercial consumers, the company said it was “constrained” to discontinue benefits offered under various schemes due to the prevailing global situation.
The move includes the suspension of downstream piping cost absorption and monthly bill subsidies for self-funded installations.
MGL expressed regret over the inconvenience caused to customers.
The development comes amid broader energy supply concerns triggered by disruptions linked to the U.S.-Israel conflict with Iran and the reported closure of the Strait of Hormuz, a key global energy transit route.
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Separately, the Indian government has barred piped natural gas (PNG) consumers from purchasing LPG cylinders with immediate effect, according to a government order issued on Monday.
The restriction follows supply tightening in the domestic LPG market, with authorities reportedly diverting available stocks to priority household consumption.
India consumed 33.15 million metric tonnes of LPG in 2025, with imports meeting nearly 60% of demand. Around 90% of these imports came from the Middle East, underlining India's vulnerability to regional disruptions.
The government is now pushing greater adoption of piped gas networks to reduce pressure on LPG supplies.
ALSO READ: LPG-To-PNG Customers Won't Get Cylinders After 30 Days, Says Govt; Offers 'Transfer Voucher'
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