On July 23, the Union government announced that it has successfully maintained relatively stable and affordable piped natural gas (PNG) prices for households in New Delhi, despite the recent surge in global liquefied natural gas (LNG) prices caused by the Middle East crisis. The Ministry of Petroleum and Natural Gas revealed this information in a written reply to a starred question in the Lok Sabha. The ministry stated that the measures taken by the government have shielded domestic consumers from the impact of higher international LNG prices. Domestic PNG continues to receive administered-price natural gas, capped at USD 7 per MMBtu for the financial year 2026-27. Since the third quarter of FY2023-24, the government has been allocating domestic natural gas equivalent to 105 per cent of the previous quarter’s actual PNG consumption to support the expansion of household PNG connections.
The government has included household PNG among the priority sectors for gas allocation under the temporary Natural Gas (Supply Regulation) Order, 2026, along with compressed natural gas (CNG), liquefied petroleum gas (LPG) production and fertiliser. This ensures continuity of essential services, energy security and public welfare. The order was later withdrawn after the supply situation improved. The ministry also clarified the pricing mechanism, stating that retail prices depend on several factors, including gas procurement costs, transportation charges, state taxes, subsidies and distribution expenses. As of May 31, 2026, more than 1.70 crore domestic PNG connections had been provided, while 6.71 lakh inch-km of pipeline had been laid.
The National PNG Drive 2.0 has introduced digital registration, simplified connection procedures and consumer outreach programmes to encourage new household PNG connections. The ministry highlighted the ongoing implementation of the National PNG Drive 2.0, expansion of infrastructure, regular monitoring of city gas distribution projects and review meetings with implementing agencies and state governments. This clarification was issued in response to a question raised by Members of Parliament during the ongoing Monsoon Session of Parliament. Entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) have been permitted to develop networks across 309 geographical areas covering 683 districts.
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📰 Source: Daijiworld