Taking note of the Liquefied Petroleum Gas (LPG) supply disruptions through the Strait of Hormuz which handles the majority of India’s LPG import consignments in transit, the government today issued a natural gas supply control order under the Essential Commodities Act, 1955.The order aims to ensure equitable distribution of gas after Liquefied Natural Gas (LNG) shipment disruptions.The Union Ministry of Petroleum and Natural Gas has issued the Natural Gas (Supply Regulation) Order, 2026, to regulate the production, supply and distribution of natural gas across the country in view of disruptions in LNG shipments caused by the ongoing conflict in the Middle East.According to the order, the Central Government has taken the step after assessing that LNG shipments through the Strait of Hormuz have been affected and several suppliers have invoked force majeure clauses. This has raised concerns over the availability of gas supplies for critical sectors in India.The order details priority allocation plan for essential sectors.Issued under Section 3 of the Essential Commodities Act, 1955, it seeks to ensure that natural gas continues to be supplied to priority sectors. The government has identified four priority categories for allocation.Under Priority Sector I, 100 per cent of the average gas consumption during the previous six months will be maintained, subject to operational availability, for domestic piped natural gas (PNG), compressed natural gas (CNG) used in transport, LPG production including shrinkage requirements, and essential pipeline operational needs such as compressor fuel.For Priority Sector II, fertiliSer plants will receive at least 70 per cent of their average gas consumption over the past six months. However, the gas must strictly be used for fertiliser production, and the concerned units will be required to furnish certification to the Petroleum Planning and Analysis Cell (PPAC) through the Ministry of Fertilizers.Under Priority Sector III, industries such as tea manufacturing and other industrial consumers connected to the national gas grid will receive about 80 per cent of their average consumption over the previous six months, depending on operational availability.Similarly, Priority Sector IV covers industrial and commercial consumers supplied through City Gas Distribution (CGD) networks. These consumers will also receive around 80 per cent of their past average consumption, subject to availability.To ensure sufficient supply for priority sectors, the order provides for curtailment of gas supply to certain non-priority sectors. Petrochemical units, including facilities such as ONGC Petro Additions Limited, GAIL’s Pata Petrochemical Complex, Reliance O2C and other high-pressure high-temperature gas consumers, will face reductions first, followed by power plants if required.Oil refineries will also absorb a part of the impact of LNG supply disruptions by reducing their gas consumption to approximately 65 per cent of the average usage during the previous six months, depending on operational feasibility.The implementation mechanism will be coordinated by Gas Authority of India Limited (GAIL) in consultation with the Petroleum Planning and Analysis Cell (PPAC). GAIL will manage supply diversion and submit invoice prices of diverted gas volumes to PPAC, which will notify a pooled price for gas redirected from non-priority sectors.Entities receiving pooled gas will have to provide an undertaking accepting the pooled price and ensure that the diverted gas is not resold.The order directs all stakeholders involved in natural gas production, import, marketing and transportation—including ONGC, Reliance Industries, Oil India Limited, Vedanta, GAIL, LNG terminal operators, pipeline operators and City Gas Distribution entities — to immediately comply with the revised supply schedules and allocation mechanisms.The government has also clarified that the provisions of the order will override existing Gas Sale Agreements and other commercial contracts if there is any inconsistency.In addition, all entities dealing with natural gas, LNG or regasified LNG will be required to furnish detailed information on production, imports, stocks, allocation, supply and consumption to the Central Government through PPAC, which has been designated as the nodal agency.The order came into force with its publication in the Official Gazette.