The Ministry of Petroleum & Natural Gas (MoPNG) has increased the allocation of natural gas to the fertiliser sector to 95 per cent of their average consumption in the last six months, effective April 9, 2026. According to reports from CNBCTV18.com, the announcement was made during an inter-ministerial briefing on recent developments in West Asia, as the government reviewed measures to ensure energy security and continuity of supply. Based on available inventory and scheduled liquefied natural gas (LNG) cargo arrivals, the overall gas allocation to fertiliser plants is being further enhanced by 5 per cent to reach approximately 95 per cent of their six-month average consumption. This follows the MoPNG's earlier decision to increase gas supply to fertiliser manufacturing units to 90 per cent, effective April 6, 2026. As per Hindustan Times, this represents the second increase in a week after the government raised gas allocation for the fertiliser sector from about 70 per cent to 90 per cent on Monday.
India's fertiliser sector consumed 9,753 million standard cubic meters (MSCM) of natural gas in H1 FY26, which accounts for 28 per cent of the country's cumulative usage. As reported by The Hindu BusinessLine, the sector averages roughly at 1,625 MSCM per month in H1 FY26, consuming 15,046 MSCM (28.6 per cent of total consumption) in 9M FY26, averaging at around 1,712 MSCM. India generally consumes around 196 million standard cubic meters per day of natural gas, of which the fertiliser sector's requirement is around 52 MSCMD. One MSCM of gas produces around 1,600 tonnes of urea, with total fertiliser sales standing at 656 lakh tonnes in FY25.
The government has doubled the supply of 5kg free trade LPG (FTL) cylinders, sold mainly consumed by migrant labourers, as reported by Hindustan Times. According to CNBCTV18.com, the government said that since March 23, about 8.9 lakh 5-kg cylinders have been sold, with over 1.1 lakh units sold on April 7 alone, compared to a February daily average of 77,000. This move came after the industry feared a potential mass exodus of migrant labourers due to the shortage of 5kg FTL in several industrial clusters. The total commercial LPG allocation has been increased to about 70 per cent of pre-crisis levels, including 10 per cent reform-linked allocation. Public sector oil marketing companies have conducted around 1,600 awareness camps in recent days to boost adoption, while a three-member committee of executive directors from IOCL, HPCL and BPCL is coordinating with states and industry to manage commercial LPG distribution.
The government is encouraging LPG users who are near PNG centres to migrate to piped gas from LPG. As reported by The Hindu BusinessLine, since March 2026, about 3.87 lakh PNG connections have been gasified and about 4.21 lakh additional customers have registered for new connections. More than 17,100 PNG consumers have surrendered their LPG connections so far. To encourage cleaner, more secure and self-reliant energy future, the Government of India has developed a model draft State compressed bio gas (CBG) Policy. The model policy is intended to serve as a comprehensive flexible guiding framework to enable States to create their own investor-friendly and implementation-oriented ecosystem for CBG development. The briefing highlighted structural reforms to expand PNG infrastructure, including directives from PNGRB to connect institutions such as schools, hostels and community kitchens within five days where pipelines exist.
The government has permitted commercial LPG supplies to additional sectors including agriculture, uranium, heavy water, pharmaceuticals, paint, ceramic, foundry and glass, as reported by Hindustan Times. Gas supply to other industrial and commercial sectors, including City Gas Distribution (CGD) networks, has also been increased by 10 per cent from April 6. As per CNBCTV18.com, CGD entities have been advised to prioritise PNG connections for commercial establishments such as hotels, restaurants and canteens, while companies including IGL, MGL, GAIL Gas and BPCL are offering incentives to accelerate adoption. The government has also notified a new order under the Essential Commodities Act to streamline pipeline approvals and accelerate network expansion, alongside an accelerated approval framework by the Ministry of Road Transport and Highways and policy support from the Ministry of Defence.
