Should PNG users worry about gas shortage? Mahanagar Gas reassures consumers

Mahanagar Gas Ltd (MGL) on Tuesday asserted that the distributor continues to maintain normal supplies of piped natural gas (PNG) across its operational areas, clarifying that the household PNG demand is met through 100% domestically produced gas.

The clarification came after a social media user asked the Mumbai-based company whether consumers should start rationing usage amid reports of energy supply disruptions linked to the conflict in the Middle East.

“Like many people in Mumbai I am lucky to get piped gas. Can @mahanagargas tell customers if we should start rationing usage? Will this supply be affected? Should we be aware?” the user posted on X.

Responding to the query, MGL said supplies to households remain stable.

“Amid global energy market developments, MGL continues to maintain normal CNG & PNG supplies across its operational areas. Domestic household PNG demand is met through 100% domestically produced gas, ensuring an uninterrupted supply,” the company said.

The reassurance comes at a time when the government has stepped in to regulate natural gas allocation after disruption in liquefied natural gas (LNG) shipments caused by the conflict in West Asia.

Invoking its powers under the Essential Commodities Act, the government issued the Natural Gas (Supply Regulation) Order, 2026, allowing it to control production, allocation and distribution of natural gas, including LNG and regasified LNG.

The Ministry of Petroleum and Natural Gas said the conflict has affected LNG flows through the Strait of Hormuz.

“The ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz and suppliers have invoked force majeure clause which would entail diversion of natural gas to the priority sectors,” the order said.

Under the new framework, supply to domestic PNG connections, compressed natural gas (CNG) used in vehicles, LPG production and essential pipeline operations has been placed in the top priority category.

The government said supply to these sectors “shall be treated as priority allocation and shall be maintained… to hundred per cent of their average past six month average gas consumption.”

Fertiliser plants have been placed in the second priority category and will receive 70% of their past six-month average gas consumption, subject to availability.

Industrial consumers connected to the national gas grid will get 80% of their average consumption, while city gas distribution companies have also been directed to maintain 80% supply to industrial and commercial users connected to their networks.

The prioritisation of household supply, however, has created a crunch for commercial LPG cylinders used by restaurants, hotels and other businesses.

Hospitality industry bodies have flagged shortages and urged government intervention, saying suppliers are unable to meet demand.

Some hotel associations have even warned of temporary closures if supplies are not restored.

Meanwhile, the government has set up a panel of senior executives at oil marketing companies to examine requests for non-domestic LPG supplies.

In a joint statement, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd said the committee will prioritise supply requests from commercial users but cautioned that availability depends heavily on imported LPG hit by the Middle East conflict.

“Since non-domestic LPG supply depends on the availability of imported products, the committee may not be able to address every grievance,” the companies said.