Government boosts Domestic Gas allocation for affordable CNG and PNG
The Central Government has taken significant steps to strengthen the domestic natural gas allocation framework. The steps are aimed at ensuring affordable availability of CNG and PNG, thereby increasing access to clean energy and improving the air quality of cities.
New Delhi: On Friday, the government announced that it has implemented essential measures to enhance the allocation framework for domestic natural gas, aligning with the Centre's goal to encourage clean energy access, improve urban air quality, and bolster domestic energy security. The Ministry of Petroleum & Natural Gas has introduced the Domestic Gas Allocation Policy to ensure the availability and affordability of CNG for vehicles and PNG for household cooking, according to the government.
In the first quarter of FY 2025-26, domestic natural gas allocation for the CNG (T) and PNG (D) segments will be determined on a two-quarter advance basis. This allocation will now also encompass New Well Gas (NWG) from fields granted to ONGC and OIL.
The forecasts by GAIL and ONGC will assist City Gas Distribution (CGD) firms in providing supply details ahead of time, thus improving planning and distribution effectiveness. The ministry also stated that to guarantee timely and dependable supply, the auction-based allocation for NWG has been substituted with a quarterly pro-rata allocation. GAIL will distribute NWG to CGD entities based on their needs according to current MoPNG guidelines. The rise in domestic gas allocation demonstrates the government's dedication to prioritizing public sectors like transport and domestic cooking.
Due to the recent decline in crude oil prices, the distribution of domestic gas will reduce the cost of natural gas for CNG(T) and PNG(D) users. 'These strategic actions will help CGD companies forecast demand more accurately,' stated the ministry. This will enhance supply efficiency.