Govt Prioritises LPG, CNG In Gas Allocation

The government has revised natural gas allocation to prioritise LPG production, CNG and piped cooking gas.

The Editorial Team of Behind The Headlines reports that the Centre has changed the priority order for domestic natural gas supply after disruptions in global LNG shipments caused by tensions in West Asia. Under the new system, LPG production, compressed natural gas (CNG) used for transport, and piped natural gas (PNG) for household cooking will receive the highest priority in allocation. According to the new Natural Gas (Supply Regulation) Order, these sectors will receive supplies equivalent to their average consumption over the past six months before gas is distributed to other industries.

The move aims to protect essential household and transport fuel needs during the ongoing supply disruption. Industrial users and some commercial sectors may face reduced gas allocations as the government attempts to manage limited supplies and ensure energy security. The policy shift highlights how geopolitical tensions affecting LNG imports can directly impact domestic fuel distribution and industry operations in India.