India Prioritizes Energy Security Amidst West Asia Conflict

Amid escalating tensions in West Asia, Prime Minister Narendra Modi has directed relevant ministries to proactively mitigate potential disruptions to India’s energy security, particularly concerning cooking gas and fertilizer supplies. The government is focused on minimizing inconvenience to citizens and ensuring the continued availability of essential commodities.

Government Measures to Secure Supply Chains

The Prime Minister’s directives, conveyed during a Union Cabinet meeting on Tuesday, March 10, 2026, prompted a coordinated response across multiple government departments. A panel of oil company executives has been formed to address reported shortages of commercial LPG cylinders and ensure adequate fuel supplies for hotels and restaurants. The oil ministry has prioritized natural gas allocation for domestic Piped Natural Gas (PNG), Compressed Natural Gas (CNG) for transport, Liquefied Petroleum Gas (LPG) production, and pipeline operations.

Fertilizer Sector Prioritized for Kharif Season

Recognizing the critical importance of fertilizer availability for the upcoming Kharif sowing season, the government has included the fertilizer sector as a high priority for natural gas supply. Fertilizer plants will receive 70 percent of their average gas consumption over the past six months, subject to operational availability. This move aims to prevent disruptions to agricultural activities and ensure farmers have access to essential inputs.

Increased Fertilizer Reserves

India currently holds a substantial fertilizer reserve of 180.12 lakh tonne as of March 10, 2026, a 36.6 percent increase compared to the 131.79 lakh tonne recorded on the same date last year. This surge is largely attributed to increased stockpiles of Diammonium Phosphate (DAP) at 25.17 lakh tonne and NPK/NPKS at 56.30 lakh tonne. Current stock levels include: Urea – 61.51 lakh tonne; DAP – 25.17 lakh tonne; NPK – 56.30 lakh tonne; Potash – 12.90 lakh tonne; and SSP – 24.24 lakh tonne. The government has imported 98 lakh tonne of urea as of February 2026, with an additional 17 lakh tonne expected over the next three months.

Natural Gas Supply Regulation Order

To ensure priority sector needs are met, the government invoked The Essential Commodities Act, 1955, and issued The Natural Gas (Supply Regulation) Order, 2026. This order establishes a tiered priority system for natural gas allocation. Beyond the highest priority sectors, tea industries and other industrial consumers will receive 80 percent of their past six-month average consumption. Gas supplies to petrochemical facilities, and power plants may be curtailed to meet the needs of priority sectors.

Pooled Pricing Mechanism

A pooled pricing mechanism, managed by GAIL India in coordination with the Petroleum Planning and Analysis Cell (PPAC), will be implemented for gas diverted from non-priority to priority sectors. The PPAC will notify a pooled price, and priority sector entities will be required to accept this price without legal challenge.

State-Level Monitoring and International Cooperation

Several state governments, including Madhya Pradesh, have established committees to oversee supply chains and coordinate with the central government. Reports indicate that Bangladesh has begun receiving additional diesel supplies from India, whereas Indian government sources clarified that this arrangement has been in place since 2017 as part of ongoing energy trade between the two countries.

Ongoing Diplomatic Efforts

Prime Minister Modi has been actively engaged in diplomatic outreach, holding meetings with Petroleum and Natural Gas Minister Hardeep Singh Puri and External Affairs Minister S Jaishankar. Indian missions in West Asia continue to assist Indian nationals seeking to return home. The Prime Minister previously spoke with leaders from the UAE, Israel, Saudi Arabia, Jordan, Bahrain, Oman, Kuwait, Qatar, and French President Emmanuel Macron regarding the situation.

Sources: Economic Times, Hindustan Times, ABPLive, News18