Mahanagar Gas Limited (MGL) has announced a curtailment in gas supplies to its Industrial and Commercial (I&C) customers. This action is a direct result of geopolitical developments impacting global energy markets, leading to supply cuts from gas suppliers. Furthermore, the Ministry of Petroleum and Natural Gas issued an order on March 9, 2026, prioritizing supplies for the Domestic Pipeline Natural Gas (DPNG) and Compressed Natural Gas (CNG) sectors, necessitating the advisory curtailment for I&C consumers.
Urgent Supply Notification Issued
Mahanagar Gas Limited has issued an official intimation regarding immediate operational impacts following adverse global energy market conditions. The company confirmed that certain gas suppliers have imposed curtailments on their supplies, which has subsequently affected the natural gas availability for the company’s Industrial and Commercial (I&C) customers.
Government Mandate on Prioritization
Further compounding the situation, the Ministry of Petroleum and Natural Gas released an Order dated March 09, 2026, titled the Natural Gas (Supply Regulation) Order, 2026. This governmental directive mandates the prioritization of natural gas allocation specifically to the Domestic Pipeline Natural Gas (DPNG) and Compressed Natural Gas (CNG) sectors. Consequently, the advisory for curtailment of supply to I&C customers aligns with this prescribed direction.
Company Response and Monitoring
In compliance with the Order, MGL has already initiated the necessary procedural steps to align its supply activities according to the government’s prescribed directions. The management is currently assessing the full financial and operational impact of these developments. Mahanagar Gas Limited has assured stakeholders that it will continuously monitor the situation and promptly inform the stock exchanges of any material updates or further developments as they arise.
Key Regulatory Context Highlighted in Order
The underlying government order, published in the Gazette of India on March 9, 2026, references prior legal precedents confirming that natural gas falls under the purview of petroleum products. The authority cited is derived from the Essential Commodities Act, 1955, granting the Central Government power to regulate supply and distribution to ensure equitable access. The priority sectors established by the Order are:
- Priority Sector I: Domestic Piped Natural Gas and CNG for transport.
- Priority Sector II: Fertilizer plants (assured 70% of average past six-month consumption).
- Priority Sector III: Tea industries and other industrial consumers (assured 80%).
- Priority Sector IV: Industrial and commercial consumers supplied via City Gas Distribution (CGD) networks (assured 80%).
The order also details mechanisms for gas redistribution, imposing full or partial curtailment on petrochemical facilities and power plants, and requires gas marketers and producers (including ONGC, RIL, GAIL, and LNG terminal operators) to comply immediately with the revised supply schedules.
Source: BSE
