The central government said on Friday that it has taken necessary steps with the aim of strengthening the allocation structure for domestic natural gas, which is in line with the center of the center of promoting access to clean energy, improving air quality in cities and strengthening domestic energy security. The government said, the Ministry of Petroleum and Natural Gas has introduced domestic gas allocation policy to maintain the availability of PNG used in vehicles and to make them economical.
In the first quarter of FY 2025-26, domestic natural gas for CNG (T) and PNG (D) segment will be allotted on a two-term advance basis. The allocation will now include New Well Gas (NWG) from the field given to ONGC and OIL.
Estimates made by GAIL and ONGC will help the City Gas Distribution (CGD) companies ensure advance supply information, which will increase the plan and distribution efficiency.
The ministry further stated, “Auction-based allocation for NWG has been replaced with Pro-Rata allocation to ensure timely and reliable supply. Gayle will allocate NWG to CGD companies in proportion to their requirements, according to the current MOPNG guidelines.
An increase in domestic gas allocation reflects the government’s commitment to prioritize public sectors like transport and domestic cooking.
Prices of both APM gas and new well gas are associated with the prices of Indian crude baskets, which are calculated on a monthly basis, with a recent fall in crude oil prices, this allocation of domestic gas will make CNG (T) and PNG (D) Natural Gas more economical for consumers. The ministry said, “These strategic measures will make it easier for CGD companies to estimate demand. This will increase the efficiency in supply.”
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