India Lifted the Energy Curbs Imposed during the West Asia Crisis

Syllabus: GS2/Governance/GS3/Energy

Context

• The government has lifted emergency curbs it had imposed on the supply of natural gas during the West Asia crisis in March.

Background

• On March 12, the Union Minister for Petroleum and Natural Gas told Parliament about the “immediate priority sequence”. 
  • Domestic piped gas to homes and CNG for vehicles receive 100% supply with no cuts. 
  • Industrial and manufacturing consumers will receive up to 80% of their previous six-month average. 
  • Fertilizer plants will receive up to 70%, protecting the agricultural input chain ahead of the sowing season. 
  • Refineries and petrochemical units absorb a managed reduction, with that gas redirected to higher-priority sectors.
• The government cited “ceasefire and negotiations” and the resumption of “sea traffic through the Strait of Hormuz” to restore gas supplies. 

Which sector uses LNG the most?

• Fertilizer plants are known to consume a bulk of India’s LNG. A little less than 30% of natural gas use goes into making fertilizers, while power plants account for 13% and city gas distribution 21%.
  • Urea, which has around 46% of nitrogen, is the most common nitrogen fertilizer. It is produced by converting natural gas (methane) into ammonia and then combining it with carbon dioxide. 

India’s Energy Demand

• India is expected to account for over 23% of global incremental energy demand by 2050, the highest for any country.
• In order to meet this growing demand, India has focused on strengthening its energy systems through policy reforms, infrastructure expansion, and cleaner energy pathways. 

• India’s LPG imports account for around 60% of domestic consumption, and about 90% of those imports normally move through Hormuz.
  • Thus, roughly 54% of normal LPG availability is under direct exposure if the corridor remains shut. 

India’s Efforts to Strengthen Energy Security

• Oilfield (Regulation and Development) Amendment Act, 2025: It modernises India’s upstream regulatory framework by simplifying procedures, enabling integrated energy development, and strengthening investor confidence.
  • The reform aims to enhance domestic oil and gas production, improve energy security, and support a stable, transparent policy environment.
• Petroleum and Natural Gas Rules, 2025: It provides a modern and transparent regulatory framework for the exploration and production of oil and natural gas. 
• Unified Pipeline Tariff (UPT): Introduced in 2023, under “One Nation, One Grid, One Tariff,” the UPT was launched to address regional disparity in gas transportation costs. 
• Fuel and Gas Infrastructure: The nationwide fuel retail network expanded from around 52,000 outlets in 2014 to over one lakh by 2025, improving last-mile fuel availability across urban and rural areas.
  • Under the vision of One Nation, One Gas Grid, the natural gas pipeline network expanded to over 25,400 km.
• Electric Mobility Infrastructure: Electric mobility infrastructure expanded with 8,932 EV charging stations installed at retail outlets under Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) Phase-II, along with over 18,500 additional charging stations set up by Oil Marketing Companies.
• The ethanol blending programme has resulted in foreign exchange savings of about ₹1.59 lakh crore, reduction of 813 lakh metric tonnes of CO₂ emissions, and substitution of 270 lakh metric tonnes of crude oil since 2014, reflecting the role of biofuels in reducing import dependence and emissions.
• Sustainable Aviation Fuel (SAF): The government has set indicative blending targets for SAF in Aviation Turbine Fuel for international flights at 1% from 2027, 2% from 2028 and 5% from 2030.
• India’s participation in platforms such as the Global Biofuel Alliance (GBA) and the G20 Energy Transitions Working Group reflects its emphasis on practical and inclusive approaches to energy transition.
• India Energy Week serves as an international platform for dialogue among governments, industry, financial institutions, and technology providers.
• Alternative Sources: India is now securing LPG from alternative sources, including the United States, Russia, Norway, and Canada.

Conclusion

• India’s energy landscape has undergone a significant transformation in recent years, supported by policy reforms, infrastructure expansion, and targeted clean energy interventions. 
• Progress across hydrocarbon governance, gas connectivity, fuel and mobility infrastructure, biofuels, and clean cooking has strengthened energy access, improved system resilience, and reduced emissions intensity. 
• These developments reflect a transition approach that emphasises scale, implementation, and inclusion while responding to rising energy demand.

Source: TH