Natural Gas supply to fertiliser plants raised to 90% of demand

New Delhi: Natural gas supplies to fertilizer plants have been raised to about 90 per cent of their requirement after oil companies procured liquefied natural gas (LNG) from spot market as part of a broader set of measures to manage fuel availability amid disruptions linked to the Strait of Hormuz situation, officials said.

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

Gas supply has been raised to 90 per cent 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.

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 per cent from Monday.

Priority sectors continue to receive protected supplies, including 100 per cent supply to domestic piped cooking gas and CNG for transport.

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 per cent of pre-crisis levels, including 10 per cent 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.