Government to divert natural gas from industries to city distributions amid soaring prices
In an official order, the ministry said supply for domestic gas to the CGD entities should be made only up to the quantity available and allocated to GAIL for CNG and PNG segments.
NEW DELHI: In a bid to cool down the CNG and piped cooking (natural) gas (PNG) prices in the country, the petroleum ministry has decided to divert natural gas from industries to the city gas distribution (CGD).
In an official order, the ministry said supply for domestic gas to the CGD entities should be made only up to the quantity available and allocated to GAIL for CNG (transport) and PNG (domestic) segments.
The move comes after a massive jump in CNG and PNG prices in the country in the last year. As per the price notification, CNG prices in Delhi went up by a massive 74% (from Rs 43.40 per kg in July 2021 to Rs 75.61 per kg in 2022), while PNG prices rose by 70% (from Rs 29.66 per standard cubic meter to Rs 50.59 per scm).
Following this order, the ministry will increase the allocation from 17.5 million scm PNG per day to 20.78 million scm for city gas operators like Indraprastha Gas in Delhi and Mahanagar Gas Ltd of Mumbai.
The government expects the increased allocation will be able to 94% of the demand for CNG to automobiles and piped cooking gas to household kitchens in the country.