REGULATORY · MARKET STRUCTURE · INDIA
India issues Natural Gas (Supply Regulation) Order, 2026
Change
India issued the Natural Gas (Supply Regulation) Order, 2026 on March 9, 2026, and the order took effect immediately upon publication in the official gazette.
Why it matters
The order dated March 9, 2026 came into effect immediately upon publication in the official gazette. It divides gas consumers into priority categories and fixes supply to each sector based on their average consumption over the past six months. Highest-priority sectors—household PNG, CNG for transport, LPG production, and fuel for pipeline operations—are to receive up to 100% of their six-month average, subject to operational availability. The order allows supply reductions for gas-based power plants and directs oil refiners to reduce gas consumption to about 65% of their six-month average depending on operational feasibility.
Implications
- · Household PNG, CNG for vehicles, and LPG production are to receive up to 100% of their six‑month average, preserving those supply streams subject to operational availability.
- · Gas-fired power plants face reduced fuel allocations and potential generation curtailment under the order.
- · Oil refineries are directed to cut gas use to about 65% of their six‑month average, affecting refinery operations reliant on pipeline gas.
- · Sectoral supply entitlements will be calculated from each sector's past six‑month average, changing allocation calculations for pipeline gas distribution.
Who is affected
- · Household PNG and LPG consumers
- · Transport operators using CNG
- · Gas-fired power plant operators
- · Oil refinery operators
What to watch
- · Order effective immediately upon publication in the official gazette on March 9, 2026
Source
Topics
Law & Public Safety Regulatory Actions Business & Markets Supply Chain & Logistics Energy & Power Energy Transition