Government says, the Empowered Group of Ministers is seized of the gas shortage issue. Petroleum and Natural Gas Minister Jaipal Reddy said, key changes in the natural gas allocation policy has been suggested because of the sharp drop in output from Reliance Industries' eastern offshore KG-D6 block. He said the Empowered group will take the final call. Reddy was reacting to a query by news persons on the meeting of some independent gas producers in New today.

In a note to the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee, the ministry has proposed to stop gas supplies to power producers that do not sell electricity at regulated tariff. Also, future gas allocations are to be made only to urea fertiliser plants and fuel allocation to phosphates and potassium fertiliser producers be stopped. The ministry has also proposed to revise the priority attached to city gas distribution networks and place them next to fertiliser and stranded assets of power sectors and before the new demands of fertiliser and power sector. The Minister said, it is for the EGoM to take a decision on these so that scarce domestic natural gas is available only for core sectors.

Earlier, inaugurating the Oil Conservation fortnight, the Petroleum Minister stressed the need for conserving fossil fuel. He said that as the country is growing, so is its energy demand which is necessary for economic growth. He said that about 70 per cent of oil needed by the country is imported. He asserted that the fuel should be used economically in view of the depleting resources.