India Boosts Gas Supplies To Fertilizer Plants To 90% Of Demand Amid Middle East Energy Disruptions

As the war in the middle east wages on, and energy disruptions persist due to Strait of Hormuz blockade, the Centre has amped up gas supply to fertilizer plants to 90% of their six-month average consumption from April 6 using spot procurement, Sujata Sharma, Joint Secretary in Ministry of Petroleum and Natural Gas, said at a news briefing.

The step was taken after oil companies procured liquefied natural gas (LNG) from spot market as part of a broader set of measures to manage fuel availability, as per officials.

With the war in the Middle East disrupting energy flows from the Gulf nations, the government initially restricted gas supply to fertiliser (urea) plants to about 60% of the requirement. It was scaled up to 75-80% through alternative arrangements.

While LNG supplies from Qatar remain suspended, Indian firms are buying from alternate suppliers in the US, Australia and Russia.

These additional supplies have led to increase in quota for different sectors, she said adding gas supply to other industrial and commercial sectors, including city gas distribution (CGD) networks, will be increased by an additional 10% from Monday.
Priority sectors continue to receive protected supplies, including 100% supply to domestic piped cooking gas and CNG for transport.

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Cooking gas LPG supplies from the Gulf countries continue to be impacted but supplies to domestic household for cooking are being fully met, she said.

"LPG supply continues to be affected by the prevailing geopolitical situation but no dry-outs have been reported at LPG distributorships," she said.

"Domestic LPG cylinder deliveries remain normal, with over 18 crore cylinders delivered to households since March 1, 2026."
Allocation of commercial LPG, used by hotels and restaurants, to states has been increased to about 70% of pre-crisis levels, including 10% reform-linked allocation, she said.

About 79,909 tonnes of commercial LPG (equivalent to over 42 lakh 19-kg cylinders) have been sold since March 14.
Unlike subsidised 14.2-kg domestic cooking gas cylinders, 5-kg free trade LPG (FTL) cylinders are being sold at market price across-the-counter at LPG distributors.

Only an identity card is required to buy such bottles, she said. Since March 23, 2026, about 6.75 lakh 5-kg FTL cylinders have been sold, she said.

"Citizens are advised to avoid panic purchase of petrol, diesel and LPG and rely only on official sources for information," she said, adding that LPG users should opt for digital booking and avoid visiting distributors.

The government said domestic LPG and PNG supplies are being prioritised for essential services, including hospitals and educational institutions, while refinery output has been increased and supply rationalisation measures implemented.

These include extending LPG refill booking intervals to 25 days in urban areas and up to 45 days in rural regions, as well as promoting alternative fuels such as kerosene, coal, PNG and electric cooking solutions to ease demand pressures.

To support availability, additional kerosene supplies have been allocated to states, while coal producers have been directed to increase supplies for small and medium consumers.

Enforcement action has been stepped up to curb hoarding and black marketing, with more than 100,000 raids conducted, over 52,000 cylinders seized, and around 220 arrests made, she said.

Public sector oil marketing companies have intensified inspections, issuing over 1,500 show-cause notices, penalising 118 LPG distributors and suspending 41, she said.

All refineries are operating at high capacity with adequate crude inventories, and retail fuel outlets remain functional nationwide, the official added.

(With inputs from PTI)

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