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Natural Gas (Supply Regulation) Order, 2026

The Priority Tier Framework

The Natural Gas (Supply Regulation) Order, 2026 is issued under Section 3 of the Essential Commodities Act, 1955 by the Ministry of Petroleum and Natural Gas. It introduces a formal, legally binding gas allocation hierarchy that overrides existing commercial gas sale agreements between private parties during the period of shortage.

Key details
  • Priority Sector I — 100% of six-month average consumption: (a) Domestic PNG (piped cooking gas); (b) CNG for transport; (c) LPG production including shrinkage gas; (d) Compressor fuel for pipeline operations
  • Priority Sector II — 70% of six-month average: Fertiliser plants (usage must be certified to PPAC via Ministry of Fertilisers)
  • Priority Sector III — 80% of six-month average: Tea manufacturing; industrial consumers on national gas grid
  • Mechanism: Gas Authority of India Limited (GAIL) manages supply diversion; submits invoice prices of diverted volumes to PPAC
  • PPAC notifies a pooled price for redirected gas — cost is socialised rather than borne by individual priority consumers
  • The order explicitly overrides existing gas sale agreements — suppliers cannot prioritise contractual obligations over government-mandated allocation
In the news

Tracked since March 10, 2026 · last seen April 04, 2026 · updates as the daily brief publishes

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