Domestic Gas Supply To CGD Sector Stable Despite CNG Price Rise: Govt

New Delhi, Dec 16 (KNN) The Government has said that domestic natural gas supplies to the City Gas Distribution (CGD) sector have not seen a sharp reduction and have remained broadly stable, even as retail prices of Compressed Natural Gas (CNG) have risen in several cities.

In written reply to a question in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said that the total allocation of domestic natural gas to the CGD sector for CNG (transport) and Piped Natural Gas (PNG–domestic) segments has remained in the range of 17–18 million metric standard cubic metres per day (MMSCMD) over the past four quarters.

Gas Allocation and CNG Pricing

The Minister explained that domestic gas continues to be allocated to the CNG and PNG segments on a priority basis. 

Where domestic supply falls short of demand, CGD entities bridge the gap by sourcing market-priced regasified liquefied natural gas (RLNG) or gas from high-pressure, high-temperature (HPHT) fields, which raises overall procurement costs and, in turn, retail CNG prices.

Retail selling prices of CNG are fixed by authorised CGD companies under the oversight of the Petroleum and Natural Gas Regulatory Board (PNGRB), taking into account gas procurement costs, state taxes, transportation tariffs and other charges. 

No Change in Excise Duty

On tax-related relief, the Minister clarified that CNG continues to attract central excise duty at 14 per cent, a rate that has remained unchanged since 2019. 

No timeline was indicated for any reduction in excise duty to offset higher prices in major CNG markets.

(KNN Bureau)