The Centre has invoked emergency measures to divert gas supplies from non-priority sectors to key users such as household and emergency supplies (hospitals) in the wake of disruption in procurement from West Asia amidst the war in Iran.
The remaining liquefied natural gas (LNG) has been reprioritised to meet 100 per cent of the demand for LPG production, CNG and piped cooking gas (PNG), 80 per cent of commercial users’ fuel needs, and 70 per cent of fertiliser unit requirements.
According to the gazette notification issued late on Monday, this latest order under the Essential Commodities Act of 1955 will override all outstanding contracts and other commercial arrangements for the sale of LNG.
The freed gas will be allocated according to a priority list based on actual average usage over the past six months. With LPG production from traditional streams at saturation levels, the government has also previously ordered refineries to maximise output by diverting streams from petrochemicals.
“There has been a 10 per cent increase in production following these measures,” a government official said. Liquefied petroleum gas, or LPG, is primarily produced by processing natural gas and is also a byproduct of crude oil refining.
Until now, compressed natural gas (CNG) and piped cooking gas have been the two priority sectors to receive domestic natural gas as their raw material. Under the revised allocation, requirements of LPG, CNG and piped gas manufacturers will be fully met first before natural gas is supplied to other sectors.
The supply of natural gas to the domestic piped natural gas grid, CNG for transport, and LPG production shall be treated as priority allocation.
A government source said a committee will now assess the requirement of LPG by commercial enterprises on a case-by-case basis and re-prioritise gas supply among commercial users. “It is a supply management issue,” sources added.
The centre’s damage control exercise, however, came under attack from Bengal chief minister Mamata Banerjee, who alleged that the latest LPG price hike has little to do with the war. “It is being said that the gas prices are being raised because of the war in West Asia. Really? She asked.
“As far as I remember, at the end of Manmohan Singhji’s term, it was ₹400. How many hikes have there been since? How many?” she asked.
Prime Minister Narendra Modi met Hardeep Singh Puri, Nirmala Sitharaman, S. Jaishankar and Piyush Goyal to take stock of the situation.
Russian oil purchase
At a White House media briefing, press secretary Karoline Leavitt said the US had “permitted” India to buy oil from Russia and that the Trump administration did not believe this would cause significant financial gains to Russia.
