India implements new policies to enhance natural gas availability and affordability, aiming to benefit consumers.

From Yahoo Finance: 2025-04-21 07:36:00

India has revamped its gas allocation policy to enhance availability and affordability. Allocations for CNG and PNG will be made two quarters in advance starting from fiscal 2026. The new policy includes NWG from ONGC and Oil India, improving planning for CGD entities. Prices are linked to Indian crude basket prices.

The government aims to make natural gas more affordable for consumers by changing the allocation strategy. A decline in crude prices has led to reduced distribution of APM gas. CGD companies like MGAS and IGAS have faced squeezed margins. APM gas allocation to CGD companies has been reduced by 18% to 20%.

India is considering eliminating import taxes on US ethane and LPG as part of trade negotiations. This aligns with increasing LNG purchases from the US. India has accelerated its E&P efforts by awarding 28 blocks under OALP Bid Round-IX, covering 136,596 km2 across eight sedimentary basins.

Read more: India introduces new measures to improve natural gas affordability and supply