The central government has officially invoked the Essential Commodities Act of 1955 to manage a growing energy crisis caused by the military conflict in West Asia. Under the new Natural Gas (Supply Regulation) Order 2026, the Ministry of Petroleum has prioritized domestic cooking gas (LPG), piped natural gas (PNG), and CNG for transport to ensure common citizens do not face shortages. This move comes as a significant portion of India’s gas supply is impacted by the gridlock in the Strait of Hormuz, where many tankers are currently stranded.
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Which sectors will get priority in gas supply?
The government has established a strict four-tier priority system to ensure that essential services continue without interruption. Domestic households and the public transport sector are at the top of the list, receiving their full required supply based on consumption data from the last six months.
- Priority 1 (100% Supply): Domestic PNG, CNG for transport, and LPG production are guaranteed full supply.
- Priority 2 (70% Supply): Fertilizer plants will receive a major portion of their requirement to protect the agricultural sector.
- Priority 3 & 4 (80% Supply): Industrial and commercial consumers are capped at 80% of their average supply.
- Supply Diversion: Gas meant for power plants and petrochemical facilities is being redirected to meet household needs.
Impact on Restaurants and Air Travel Costs
The redirection of gas has led to a shortage of commercial LPG cylinders, creating a challenge for the hospitality industry. Commercial gas prices have reportedly risen by 1.5 times in some regions. In response, the National Restaurant Association of India has advised members to switch to induction cooking and electric appliances to manage the crisis. Additionally, air travelers will now face extra costs as airlines adjust to rising fuel prices.
| Service Type | New Surcharge / Impact |
|---|---|
| Domestic Air Tickets | ₹399 surcharge per ticket |
| International Flights | Up to $200 (approx. ₹18,324) surcharge |
| Commercial LPG | Significant shortage and price surge |
| Hormuz Gridlock | Approx. 700 tankers currently stranded |
Strict Monitoring to Prevent Black Marketing
To ensure that the available gas reaches the common man, a high-level monitoring committee has been formed. State governments, including Bihar, have warned of strict action under the Essential Services Maintenance Act (ESMA) against those caught hoarding or black-marketing gas cylinders. Officials are authorized to conduct inspections and can arrest violators without a warrant. The government is also working to expand gas sourcing to 40 different countries to reduce dependency on the impacted West Asian routes.
