The world's most populous nation is the fourth largest liquefied natural gas (LNG) buyer, and second-largest buyer of liquefied petroleum gas (LPG), such as that used for cooking -- much of which is sourced from the Middle East. "The ongoing conflict in the Middle East has resulted in the disruption of liquefied natural gas shipments through the Strait of Hormuz," the Ministry of Petroleum said in an order issued on Tuesday. It said the new rules would "ensure equitable distribution and continued availability for priority sectors". The ministry ordered that LNG supplies be prioritised to supply households, transport sectors and production of LPG. But other sectors, including fertiliser plants and tea industries, would receive 70 to 80 percent of consumption needs, "subject to operational availability".

To meet the gap, gas supplied to petrochemical facilities and power plants would either be fully or partially curtailed. Indian industries including several ceramics and tile firms have already said they are facing a cutback in gas supplies that could impact production. Restaurants and hotels across India also warned of disruptions to operations, after a separate ministry order on Monday that prioritised domestic LPG supplies to households. The National Restaurant Association of India warned that the government order had resulted in LPG suppliers "across the country" signalling that supplies to eateries would be stopped. (Bssnews)