Amid a significant supply crunch resulting from the ongoing conflict in Iran, the Indian government has announced plans to make 7 million metric standard cubic meters per day (mmscmd) of natural gas available to priority sectors, including city gas distributors and fertilizer manufacturers. This decision follows a sharp decline in natural gas imports, which fell by 60% after the Iranian attack on Qatar’s LNG facility and the effective closure of the Strait of Hormuz. The gas will be priced at around $11.60 per metric million British thermal unit (mmbtu), with an additional charge of $0.20 per mmbtu imposed by Gail (Gas Authority of India Limited), which is responsible for managing the supply. Stakeholders have expressed concerns over this charge, arguing that it is unnecessary as Gail operates under a government mandate without significant market risk. The priority allocation includes piped natural gas for households and compressed natural gas (CNG) for transport, with fertilizer plants receiving a supply cap increase to 90% of their average consumption effective April 6, 2026. This strategic move aims to ensure that essential sectors continue to receive adequate gas supplies during the ongoing crisis.