Government turns to data control as Middle East crisis strains energy security

The Centre has classified energy-related information as a matter of national security, directing all companies across the oil and gas value chain to share detailed operational data with the government in a bid to strengthen supply monitoring amid global disruptions.

Under the newly notified Petroleum and Natural Gas (Furnishing of Information) Order, 2026, the government has made it mandatory for refiners, importers, pipeline operators, city gas distributors and petrochemical firms — across both public and private sectors — to regularly submit granular data to the Petroleum Planning and Analysis Cell (PPAC).

The order, issued by the Oil Ministry through a gazette notification on 18 March, requires companies to disclose information on production, imports, exports, stock levels and consumption patterns. In some cases, reporting may be required on a daily basis. Significantly, the directive overrides existing contractual or commercial confidentiality obligations, making compliance compulsory.

The move comes against the backdrop of heightened energy security concerns following the disruption of supplies from the Middle East due to the ongoing conflict, which has impacted key shipping routes including the Strait of Hormuz.

Before the disruption, more than half of India’s crude oil imports were sourced from countries such as Saudi Arabia, Iraq and the UAE via the strait. A substantial share of liquefied petroleum gas (LPG) — estimated at 85 to 95 per cent — and around 30 per cent of natural gas also passed through this route.

India’s heavy dependence on imports has amplified the impact of these disruptions. The country relies on overseas supplies for roughly 88 per cent of its crude oil, 50 per cent of natural gas and 60 per cent of LPG, leaving it exposed to geopolitical shocks and price volatility.

While crude oil supplies have been partially stabilised through alternative sourcing from Russia, West Africa, the United States and Latin America, shortages of gas and LPG have begun to affect industrial, commercial and household consumption.

Officials said the new order is aimed at creating a centralised, real-time data framework to improve visibility across the supply chain. This, they noted, would enable quicker response to disruptions, better inventory management and prioritisation of critical sectors such as power generation, fertilisers and domestic LPG consumption.

The directive has been issued under powers granted by the Essential Commodities Act, which allows the government to seek information related to production, supply, distribution and utilisation of essential commodities in the public interest.

According to the notification, all entities involved in the petroleum and natural gas ecosystem — including producers, refiners, marketers, storage operators and transporters — must furnish data in formats and intervals specified by the government or PPAC, ranging from daily to periodic submissions.

Importantly, companies will not be permitted to withhold information on the grounds of commercial sensitivity or proprietary concerns.

The policy shift reflects a broader evolution in India’s energy strategy, which has traditionally focused on diversifying supply sources and building strategic reserves. While infrastructure such as storage facilities has been expanded in recent years, officials acknowledged that gaps in real-time data had limited the government’s ability to respond swiftly to supply shocks.

Industry players are now expected to upgrade their reporting systems to comply with the tighter regulatory framework, as authorities place greater emphasis on data-driven decision-making.

Officials indicated that in an increasingly volatile global environment, energy security will depend not only on securing supplies but also on maintaining real-time visibility across the entire supply chain.