'India must revise 15% gas target’: Energy expert warns of LNG disruption amid West Asia war
With the West Asia conflict squeezing oil and gas supplies, India needs to cut down domestic gas consumption and find cheaper fuel substitutes, says Kirit Parikh, energy expert and former Member, Planning Commission
- Mar 23, 2026,
- Updated Mar 23, 2026 12:45 PM IST
India must modify its target of having 15% of gas in the energy mix by 2030 in light of the disruption to global LNG supplies amidst the war in West Asia, said renowned energy expert Kirit Parikh. He added that the country should also cut down domestic gas consumption.
India has been moving towards a gas-based economy from an imported crude-based economy for its energy requirements. Gas was projected as a transition fuel for reducing the carbon intensity of GDP.
“In today’s circumstances, it (gas target) has to be significantly modified because now the question becomes financial stability of the country and economy and not just reducing carbon emissions. I think we have to balance these requirements on both sides,” Parikh told Business Today.
Parikh headed the committee on fair pricing of natural gas that submitted its report in November 2022. It recommended full deregulation of gas prices from January 1, 2027. In April 2023, the government accepted the key suggestions of the panel and amended the domestic pricing model of natural gas by introducing floor and ceiling prices. It reduced the CNG and PNG prices by 10%.
Cutting down natural gas consumption
Parikh, a former member of the Planning Commission, said India should devise a strategy to cut down on domestic consumption and push for gas substitution.
“When the total availability of gas goes down, the prices should go up, and consumption should go down. India needs to find substitutes such as biogas, gas from waste and others to make it available for domestic and other uses,” he said.
Parikh also says raising gas prices is a better solution than rationing it, because rationing would not necessarily increase efficiency of use, whereas increasing the price will certainly raise the efficiency of gas use.
Bureaucratic hurdles
The slow growth in India’s oil and gas exploration and production capacity comes despite policy reforms. It stems from the failure to attract foreign investors even after allowing 100% FDI by the government in the sector.
Parikh says foreign investors want freedom to market this gas.
“The kind of bureaucratic permissions and other clearances required are time-consuming. Large companies are reluctant to come into India for two reasons. They don’t see Indian fields promising enough and are reluctant to invest money where they are not going to get huge rewards. Second, the number of permits required to operate in India is not just large, it's very large,” he explained.
Parikh said foreign companies are not likely to invest in India unless they have an option and attractive possibilities like those done for iPhone makers. “They just came into India when China became difficult for them. So, something similar will work for this sector,” he added.
India must modify its target of having 15% of gas in the energy mix by 2030 in light of the disruption to global LNG supplies amidst the war in West Asia, said renowned energy expert Kirit Parikh. He added that the country should also cut down domestic gas consumption.
India has been moving towards a gas-based economy from an imported crude-based economy for its energy requirements. Gas was projected as a transition fuel for reducing the carbon intensity of GDP.
“In today’s circumstances, it (gas target) has to be significantly modified because now the question becomes financial stability of the country and economy and not just reducing carbon emissions. I think we have to balance these requirements on both sides,” Parikh told Business Today.
Parikh headed the committee on fair pricing of natural gas that submitted its report in November 2022. It recommended full deregulation of gas prices from January 1, 2027. In April 2023, the government accepted the key suggestions of the panel and amended the domestic pricing model of natural gas by introducing floor and ceiling prices. It reduced the CNG and PNG prices by 10%.
Cutting down natural gas consumption
Parikh, a former member of the Planning Commission, said India should devise a strategy to cut down on domestic consumption and push for gas substitution.
“When the total availability of gas goes down, the prices should go up, and consumption should go down. India needs to find substitutes such as biogas, gas from waste and others to make it available for domestic and other uses,” he said.
Parikh also says raising gas prices is a better solution than rationing it, because rationing would not necessarily increase efficiency of use, whereas increasing the price will certainly raise the efficiency of gas use.
Bureaucratic hurdles
The slow growth in India’s oil and gas exploration and production capacity comes despite policy reforms. It stems from the failure to attract foreign investors even after allowing 100% FDI by the government in the sector.
Parikh says foreign investors want freedom to market this gas.
“The kind of bureaucratic permissions and other clearances required are time-consuming. Large companies are reluctant to come into India for two reasons. They don’t see Indian fields promising enough and are reluctant to invest money where they are not going to get huge rewards. Second, the number of permits required to operate in India is not just large, it's very large,” he explained.
Parikh said foreign companies are not likely to invest in India unless they have an option and attractive possibilities like those done for iPhone makers. “They just came into India when China became difficult for them. So, something similar will work for this sector,” he added.