Lok Sabha Question No. 2047 (UNSTARRED), answered on 2025-07-31
Subject: Availability of CNG and PNG Infrastructure
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri  Chhotelal, Shri Zia Ur Rehman

## LOK SABHA

TO BE ANSWERED ON 31 st  July, 2025

## AVAILABILITY OF CNG AND PNG INFRASTRUCTURE

## 2047.  SHRI ZIA UR REHMAN: SHRI CHHOTELAL:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  Government is  aware that  various  parts  of  the country  particularly  rural  and backward regions continue to face challenges such as limited availability of CNG and PNG infrastructure, delay in new gas connections, rising prices of petroleum products including petrol  and  diesel,  which  directly  affect  the  common  people  especially  women  and  poor households;
- (b) if so, the details thereof along with the steps being taken to improve distribution networks in remote areas, expand infrastructure for CNG and PNG, promote ethanol blending to reduce dependence  on  fossil  fuels,  stabilize  prices  of  petrol  and  diesel  and  encourage  electric mobility infrastructure to support clean energy transition; and
- (c) if not, the reasons therefor?

## ANSWER पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे शगोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a)  to  (c)  Providing  affordable  and  clean  fuel  for  cooking  and  mobility  is  a  key  priority  of Government.  To  this  end,  various  initiatives  have  been  undertaken  to  promote  the  use  of Compressed Natural Gas (CNG), Piped Natural Gas (PNG), Liquefied Petroleum Gas (LPG), Ethanol, Compressed Bio Gas (CBG), and Electric Mobility.

Providing Piped Natural Gas (PNG) connections and establishment of Compressed Natural Gas (CNG) stations is part of development of City Gas Distribution (CGD) Networks and the same is  carried  out  by  the  entities  authorized  by  Petroleum  and  Natural  Gas  Regulatory  Board (PNGRB) as per their Minimum Work Programme (MWP).

After  completion  of  12/12A  CGD  bidding  round,  PNGRB  has  authorized  entities  for  the development of CGD network in 307 Geographical Areas (GAs), covering almost 100% of the country's  mainland  area  (excluding  islands)  including  rural  and  backward  regions.  As  on 31.05.2025,  various  CGD  entities  have  provided  more  than  1.50  Crores  domestic  PNG connections  and  commissioned  more  than  8,000  CNG  Stations  against  the  Minimum  Work Programme (MWP) of about 12.6 Crores domestic PNG connections and 18,336 CNG stations across the country (to be achieved by 2034).

The  Government  has  taken  various  steps  to  ensure  the  availability  of  natural  gas  to  CNG (Transport)  and  PNG  (Domestic)  sector,  which  includes  allocating  domestic  gas  on  priority basis  to  CNG(T)/PNG(D),  diverting  domestic  gas  from  non-priority  sectors  to  meet  the requirement for CNG(T)/PNG(D) sector, expansion of CGD network, expansion of National Gas  Grid  Pipeline, setting up of Liquefied Natural Gas  (LNG)  terminal,  Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-CNG, etc. Government  has  also  notified  that  gas  produced  from  discoveries  in  deep  water,  ultra-deep water and high-pressure high temperature areas is prioritized for supply to the CNG(T)/PNG(D) sectors.

With  an  objective  to  provide  deposit  free  LPG  connection  to  adult  women  from  poor households across the country Pradhan Mantri Ujjwala Yojana (PMUY) was launched in May, 2016. As on 01.07.2025, there are 10.33 crore PMUY connections across the country.

In order to create awareness about the scheme and also to address any issue pertaining to LPG usage, various steps have been taken inter alia, including organizing campaigns for improving awareness about PMUY,  organizing melas/campsto enrol and distribute connections, promotion through Out of Home (OOH) hoardings, radio jingles, Information, Education and Communication (IEC) Vans etc., spreading awareness about advantages of using LPG over other conventional fuels and safe usage of LPG through LPG Panchayats, enrolment/awareness camps  under  Viksit  Bharat  Sankalp  Yatra,  facilitation  of  consumers  and  their  families  for Aadhar enrolment and opening of bank accounts for getting PMUY connections. Government has  taken  several  steps  to  encourage  consumption  of  LPG  by  PMUY  beneficiaries,  which include deferment of loan recovery from subsidy amount, Swap option from 14.2 kg to 5 Kg to reduce  upfront  cash  outgo,  option  of  5  Kg  Double  Bottle  Connection,  Conducting  Pradhan Mantri  LPG  Panchayat  to  convince  the  beneficiaries  to  use  LPG  on  sustained  basis,  mass awareness camps etc. As a result of these efforts, per capita consumption of PMUYbeneficiaries (in terms of no. of 14.2 kg LPG cylinders taken per year) has increased from 3.68 (FY 2021-22) to 4.47 in FY 2024-25.

To make LPG more affordable to PMUY consumers and ensure sustained usage of LPG by them, Government started a targeted subsidy ofRs.200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 Kg connections) to the PMUY consumers in May 2022. In October 2023, Government increased the targeted subsidy to Rs.300 per 14.2 kg cylinder.  After  a  targeted  subsidy  of  Rs.  300/cylinder  to  PMUY  consumers,  Government  of India is providing 14.2 Kg LPG cylinders at an effective price ofRs.553 per cylinder (in Delhi). This is available to more than 10.33 crore Ujjwala beneficiaries, across the country.

As of July 01, 2025, there are a total of 25,573 LPG distributorships across the country, out of which 17,646 are serving rural areas. These are served through 213 LPG bottling plants of Oil Marketing Companies (OMCs) located across the country. In order to improve access of LPG in rural and remote areas, OMCs have commissioned 7997 distributorships, during 01.04.2016 to 30.06.2025 across the country, out of which 7403 (i.e. 93 %) [Rurban- 1033, Gramin- 4991, Durgam Kshetriya Vitraks and Rajiv Gandhi Gramin LPG Vitrak (DKV+RGGLV) - 1379] are catering to rural areas.

Prices of petrol and diesel are market determined and Public Sector Oil Marketing Companies (OMCs)  take  appropriate  decision  on  pricing  of  petrol  and  diesel.  The  prices  of  petroleum products  in  the  country  are  linked  to  the  price  of  respective  products  in  the  international market.  India imports more than 85% of its crude oil requirements. Crude oil prices (Indian basket)  increased  from  $55/bbl  (March  2015)  to  $113/bbl  (March  2022)  and  further  to $116/bbl (June 2022) and have continued to fluctuate due to various geopolitical and market factors.

Domestically,  petrol  and  diesel  prices  have  come  down  to  ₹94.77  and  ₹87.67  per  litre respectively (Delhi prices) as a result of various steps taken by Government and PSU OMCs. Central excise duty was reduced by the Government by a total of ₹13 per litre and ₹16 per litre on petrol and diesel respectively in two tranches in November 2021, and May 2022, which was fully  passed  on  to  consumers.  Some  State  Governments  also  reduced  state  VAT  rates  to provide  relief  to  consumers.  In  March  2024,  OMCs  reduced  the  retail  prices  of  petrol  and diesel by ₹2 per litre each. In April 2025, Excise duty on petrol and diesel was increased by ₹2 per litre each, but this was not passed on to consumers.

OMCs recently carried out an intra-state freight rationalization. This has benefited consumers located  at  remote  areas,  far  from  Petroleum  Oil  &  Lubricants  (POL)  Depots  in  the  form  of reduced  Petrol  and  Diesel  prices  in  remote  parts  within  the  states.  This  initiative  has  also reduced the difference between the maximum and minimum retail prices of Petrol or Diesel within a state.

Government has also taken several steps to insulate common citizens from high international prices which inter-alia include diversifying the crude import basket, invoking the provisions of Universal  Service  Obligation  to  ensure  availability  of  petrol  and  diesel  in  domestic  market, increasing the blending of ethanol in petrol etc.

To reduce the dependency on fossil fuels, Government is promoting blending of ethanol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell petrol blended with ethanol, as a green and renewable fuel, ethanol significantly contributes  to  environmental  sustainability,  reduces  dependence  on  imported  crude  oil, conserves  foreign  exchange,  and  supports  the  domestic  agriculture  sector.  In  addition, Government is also promoting alternate fuels which inter-alia include Liquefied Natural Gas (LNG), Green Hydrogen and Compressed Bio Gas (CBG), etc. for reduction in green house gas emissions as well as reduction in import dependence of fossil fuels.

Further, the National Electric Mobility Mission Plan (NEMMP) 2020 provides a roadmap for the adoption and manufacturing of electric vehicles in India, aiming to enhance national fuel security  and  promote  environment  friendly  transportation.  As  part  of  NEMMP  2020,  the Ministry  of  Heavy  Industries  (MHI)  is  implementing  the  various  schemes  viz.  Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLIAuto),  PM  Electric  Drive  Revolution  in  Innovative  Vehicle  Enhancement  (PM  E-DRIVE) Scheme, PM e-BusSewa-Payment Security Mechanism (PSM) Scheme, Scheme for Promotion of  Manufacturing  of  Electric  Passenger  Cars  in  India  (SPMEPCI)  on  pan-India  basis  to strengthen electric vehicle (EV) ecosystem and accelerate adoption of electric vehicle in the country.  Government  is  also  laying  emphasis  on  setting  up  of  EV  charging  stations.  As  on 01.01.2025 the OMCs have established 4523 EV charging stations(EVCS) at their retail outlets (ROs) under FAME-II scheme. In addition, they have also established 20,035 EVCS at their ROs from their own funds.

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