Covid-19 pandemic & Russia-Ukraine war: Black swans in India's gas economy

The war in Ukraine is upending the Modi government's efforts to make the creation of natural gas infrastructure and access a critical component of its economic programme

Natural gas is India’s new battleground for politicians, industries and transporters. Protests and strikes have erupted after utilities sharply hiked prices of compressed natural gas (CNG) and piped natural gas (PNG) to record levels, affecting autos, buses and households. Utilities complain over delays in allocation of cheaper domestic cooking fuel. The government is not to blame, however, and consumers must prepare for long periods of high prices as the global gas market has structurally altered in the face of the pandemic and the Ukraine war.

Let us look at what led to this transition in the gas market, which carries