CII seeks faster fuel shift, gas allocation transparency

New Delhi: The Confederation of Indian Industry has urged the government to fast-track fuel switching and improve transparency in gas allocation to shield industry from potential disruptions amid escalating tensions in West Asia.

In recommendations submitted to the ministry of petroleum and natural gas last week, the industry body proposed temporarily shifting urban households from liquefied petroleum gas (LPG) to piped natural gas (PNG) and compressed natural gas (CNG). It also called for prioritising PNG supplies for industries with dual-fuel capabilities to ensure operational continuity.Also Read: The US-Israel war against Iran is rolling into unrestricted warfare - until oil and gas inventories last

CII suggested a three-month transition for residential societies connected to gas grids to ease pressure on LPG supplies and redirect cylinders to underserved rural areas, according to the submission reviewed by ET.


To improve visibility, it proposed a real-time gas allocation dashboard tracking total availability, including domestic output and liquefied natural gas (LNG) imports, along with sector-wise distribution and pooled pricing.

The industry body also sought clarification from the petroleum ministry under the Essential Commodities Act to allow companies to procure LNG outside the pooled mechanism, arguing that greater flexibility would help manage shortages and volatile prices. The recommendations come as geopolitical tensions inWest Asia roil energy markets, driving up prices and prompting precautionary buying.

CII also called for diversification of LPG imports, particularly from the US and other suppliers that bypass the Strait of Hormuz, to reduce supply risks.

On the demand side, it recommended incentives for electric cooking in cities and decentralised solar-based solutions in smaller towns and rural areas.Also Read: Iran warns of ‘irreversible damage’ to regional infrastructure if its power plants are attacked

For the longer term, the industry body flagged limited storage buffers, with LPG reserves covering less than 15-20 days of consumption, and called for faster development of strategic storage near LNG terminals alongside smaller units at refineries.

It also highlighted the potential of compressed biogas under the Sustainable Alternative Towards Affordable Transportation initiative, urging faster commissioning of approved plants.