Govt Boosts Gas Supply to 90% for Fertiliser Plants; Slashes Fuel Duty

The Government has increased natural gas supply to Fertiliser Plants to about 90% of their average consumption over the past 6 months, effective April 6, 2026. Earlier, the supplies were at around 70-75%. 

As per news reports, the revision is backed by domestic gas availability and scheduled LNG cargo arrivals. Fertiliser plants rely on gas as a key input, and the higher allocation is to support urea production ahead of the sowing season. 

Additional Allocation for Industry 

Gas supply to other industrial and commercial users has been raised by around 10%. This includes sectors connected through City Gas Distribution (CGD) networks. 

This is intended to avoid disruptions in industrial activity at a time when global energy markets remain uncertain. Stable supply is expected to support ongoing operations across sectors. 

Cut in Fuel Duty and Export Levy 

Excise duty on petrol and diesel has been reduced by ₹10 per litre. Retail prices, however, remain unchanged. 

The government has also imposed an export levy on diesel and aviation turbine fuel (ATF). The plan is to retain adequate fuel supplies within the domestic market. 

LPG Availability and Distribution 

LPG supply remains stable across the country, with no shortages reported. Measures have been taken to maintain distribution and prevent stockpiling. 

These include increased availability of smaller 5 kg cylinders and stricter checks on black marketing. The steps are for ensuring regular supply. 

PNG Connections and Infrastructure 

City gas companies have been asked to prioritise Piped Natural Gas (PNG) connections for commercial establishments such as hotels and restaurants. 

A framework under the Essential Commodities Act has been introduced to speed up pipeline expansion and approvals for gas infrastructure projects. 

Supply Chain and Advisory 

Shipping and port operations continue without disruption. There are no reports of congestion, and movement of crude oil and LNG remains steady. 

The government has advised consumers to avoid panic buying and to follow official information. 

Read More: Moody’s Lowers India FY27 Growth Estimate to 6% Amid West Asia Energy Disruptions! 

Conclusion 

The measures come amid tensions in West Asia affecting global energy markets. Current assessments indicate that domestic supply conditions remain stable. 

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