The Indian government has introduced significant policy measures to ensure the affordability and availability of domestic natural gas for Compressed Natural Gas (CNG) used in transport and Piped Natural Gas (PNG) used in households.
Under the revised allocation framework, natural gas distribution will now be planned two quarters in advance, improving supply predictability for City Gas Distribution (CGD) entities. Additionally, New Well Gas (NWG) from nomination fields of ONGC and OIL will be allocated on a pro-rata basis instead of being auctioned, ensuring timely distribution.
Despite rising demand, the allocation ratio has been largely maintained, with around 55% of projected demand being fulfilled in upcoming quarters. Further, gas pricing remains linked to the Indian Crude Basket, meaning recent declines in crude oil prices could translate to lower costs for consumers.
These enhancements aim to improve efficiency for gas distribution companies, bolster urban air quality, and support India’s clean energy transition.
