India declares force majeure, allocates full gas supply to households and automobiles

New Delhi — The Indian government has invoked force majeure to address a shortfall in natural gas supplies, prioritising the allocation of available gas to critical sectors. According to an official statement, the government has decided that households and the automobile sector will receive 100% of their natural gas requirements.

The move comes amid ongoing supply constraints, prompting authorities to ensure uninterrupted gas delivery to sectors deemed essential. The official statement outlined that the supply of natural gas to domestic consumers and the transport sector, particularly for compressed natural gas (CNG) vehicles, will be maintained at full capacity.

Other sectors, including power generation and fertiliser production, will receive gas based on the remaining available quantities after meeting the needs of households and automobiles. The government has emphasised that this measure is temporary and will be reviewed as the supply situation evolves.

Force majeure, a legal provision invoked in this instance, allows the government to alter contractual obligations in response to extraordinary circumstances affecting supply chains. The official statement highlighted that this step was necessary to manage the limited availability of natural gas and to protect the interests of the most critical sectors.

India has faced challenges in securing sufficient natural gas supplies due to a combination of domestic production issues and international market fluctuations. The government’s decision is aimed at minimising the impact on daily life and essential services, particularly for residential consumers and public transportation.

The statement did not specify the duration of the force majeure or provide details on when normal supply allocations might resume. Authorities have indicated that the situation will be closely monitored and adjustments will be made as necessary.