Kolkata: While the oil marketing companies are still absorbing the elevated prices of crude oil and the government has not given its nod for a rise in the retail prices of petrol and diesel, the picture in the gas market is different. There is already a shortage in the LPG, PNG and CNG markets and different sections are feeling the pinch acutely. The prices of the gasses have also been raised by the government. Deliveries of these gasses have virtually stopped from the Gulf countries since many of the production units have stopped working following attacks on these assets. Against this background, Adani Total Gas and Reliance Industries have decided to step on the production of these essential gasses to raise domestic output as far as possible.
RIL maximising LPG output
Reliance Industries is taking measures to step up LPG production. It said it will divert natural gas to priority sectors in line with government’s recent guidelines. The company said it was maximising LPG output at its refining and petrochemicals complexes at Jamnagar. “Our teams are working around the clock to optimise refinery operations and enhance LPG output,” said RIL in a press statement.
Reliance Industries also mentioned that natural gas generated from the KG-D6 Basin will be diverted to stabilise supply to priority sectors. “We will continue to work closely with the government of India and comply with national guidelines to ensure energy supplies reach the sectors and communities that need them the most,” RIL added in its statement.
Adani Total Gas on PNG and CNG supply
Piped natural gas and compressed natural gas are used for different purposes but both are of vital importance to the sectors they serve. Piped natural gas or PNG is primarily used as a clean, reliable fuel for cooking at home. It is also used in business establishments such hotels, restaurants, hospitals and in boilers and furnaces. Compressed natural gas or CNG is used as a cleaner, greener and more affordable fuel for vehicles such as autorickshaw, taxi, bus and private cars.
On Wednesday, Adani Total Gas said domestic PNG and CNG for transport are being allocated priority under Natural Gas (Supply Regulation) Order, 2026. The company also revealed to the stock exchanges that some of its gas suppliers have curbed deliveries amid rising tensions in the Gulf region. This has directly resulted in an adverse impact on the company’s supply to industrial consumers.
“The company appreciates the Government’s prompt efforts in bringing out the said Order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” Adani Total Gas mentioned in its filing to the exchanges.
Essential Commodities Act, 1955 invoked
To tackle the crisis, the government invoked the Essential Commodities Act, 1955 to regulate the availability-distribution of natural gas. According to the order, a few sectors will receive priority allocation of natural gas. Domestic PNG supply, CNG for transport and LPG will be supplied up to 100% of their past six-month average consumption (subject to operational availability). Also fertilizer plants will get 70% of their average gas consumption over the past six months. Other sectors such as tea industries, manufacturing units etc will get around 80% of their previous consumption levels.