The move comes as industrial gas prices are set to surge to around ₹85-88 per standard cubic metre (SCM), plus VAT, from about ₹41.31 earlier, according to industry sources. The sharp increase follows supply disruptions and rising global LNG prices amid escalating tensions in West Asia.
India, one of the world’s largest importers of oil and gas, is particularly exposed to such global shocks, with industrial consumers among the first to face supply curbs.
Industry players said that if gas allocations fall below 70% of requirements, restarting production may not be viable for several units, raising concerns over output disruptions.
Earlier this month, Gujarat Gas had already cut supplies to industrial consumers and invoked force majeure provisions under its gas supply agreements.
Shares of Gujarat Gas were trading at ₹325.55 apiece, down 1.71% as of 11:42 am.
#JustIN | #GujaratGas asks industrial customers to assess gas consumption in April to manage supplies: sources say
Prices from April 1 increased to Rs 85-88+ VAT vs Rs 41.31+ VAT before the crisis
Industry says, if less than 70% gas is allocated, we might not be able to start… pic.twitter.com/9dfZDKAdpn
— CNBC-TV18 (@CNBCTV18Live) March 27, 2026
The tightening in industrial gas supply comes amid broader government efforts to manage the fallout of global energy market disruptions.
According to a Reuters report, the government has advised automakers and component manufacturers to optimise production schedules and reduce dependence on oil-based fuels. In a March 25 advisory, the heavy industries ministry urged companies to shift towards electricity and alternative materials where feasible.
At the same time, the government has invoked emergency measures to regulate gas distribution, prioritising essential sectors such as fertilisers, transport and households, while industrial users bear the bulk of supply cuts.
Petroleum Minister Hardeep Singh Puri has urged the public not to panic, stating that the government is absorbing the financial impact of rising global prices instead of fully passing it on to consumers.
In a recent post, he noted that international crude prices have surged from around $70 per barrel to about $122 in recent weeks, driving sharp fuel price increases globally.
The shortage of industrial gas supply comes amid broader government measures to manage a supply shock triggered by disruptions to energy shipments from West Asia.
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First Published: Mar 27, 2026 11:58 AM IS
