Page 46 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Madhya Pradesh, Chhattisgarh, Gujarat, Goa, Odisha, West Bengal, Bihar, Jharkhand, Punjab, Himachal
Pradesh, Jammu and Kashmir, Rajasthan, Uttar Pradesh, Delhi, Haryana, Uttarakhand, Karnataka, Tamil
Nadu, Kerala, Telangana, and Andhra Pradesh. Chief Secretaries and senior officials have been briefed
on the supply position, the priority sequence, and the enforcement framework. District-level monitoring
committees are being established. Anti-diversion raids have been conducted and cases registered in
multiple states. This is cooperative federalism responding to a national challenge with the coordination
it demands.

11. This is not the moment for rumour-mongering or fake narratives. India is navigating the most severe
global energy disruption in recorded history. Crude supply is flowing. Gas is prioritised for homes and
farms. LPG production has been stepped up by 28 per cent. Consumer prices are held far below what
markets and regional comparators would dictate. Schools are open. Petrol is on the forecourt. Every
citizen, regardless of political affiliation, has a stake in that. India must stand united behind its energy
warriors, behind the institutions managing this crisis, and behind the national interest. The record of
preparation and the record of response speak for themselves.

Government Notifies Landmark Order to Strengthen Natural Gas Infrastructure and Improve Ease of
Doing Business

The Government of India, through the Ministry of Petroleum and Natural Gas, has notified the Natural
Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of
Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order
provides a streamlined and time-bound framework for laying and expanding pipelines across the
country, addressing delays in approvals and access to land, and enabling faster development of natural
gas infrastructure, including in residential areas.

Published in the Extraordinary Gazette of India, the Order comes into immediate effect and establishes a
comprehensive, transparent, and investor-friendly framework for efficient gas distribution, rapid
infrastructure expansion, and equitable access to cleaner energy.

The Order aims to facilitate the expansion of piped natural gas (PNG) networks, improve last-mile
connectivity, and promote a shift towards cleaner fuels for cooking, transport and industrial purposes,
thereby strengthening energy security and supporting India’s transition to a gas-based economy.

Policy Rationale

India’s growing energy demand and evolving global energy landscape necessitate a resilient, diversified,
and efficient energy system. This Order addresses longstanding challenges in infrastructure
development, regulatory uncertainty, and delays in approvals, while positioning natural gas as a key
transition fuel.

At its core, the reform is designed to significantly improve ease of doing business by simplifying
procedures, reducing regulatory bottlenecks, and creating a predictable and transparent operating
environment for stakeholders.

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