Lok Sabha Question No. 4661 (UNSTARRED), answered on 2025-08-21
Subject: Domestic Gas Allocation Policy
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Bharatsinhji Shankarji Dabhi, Shri Janardan Mishra, Shri Khagen Murmu, Shri Alok Sharma, Dr. Lata Wankhede, Shri Manoj Tiwari

## LOK SABHA

## UNSTARRED QUESTION No. 4661

TO BE ANSWERED ON 21 ST  August, 2025

## DOMESTIC GAS ALLOCATION POLICY

## † 4661. DR. ALOK SHARMA:

SHRI BHARATSINHJI SHANKARJI DABHI:

SHRI MANOJ  TIWARI:

SHRI JANARDAN MISHRA:

SHRI KHAGEN MURMU:

DR. LATA WANKHEDE:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a) whether the Government has recently amended the methodology of allocation of domestically produced natural gas to the City Gas Distribution (CGD) entities;
- (b) if so, the details of the new gas allocation mechanism and the manner in which the same differs from the earlier system;
- (c)  whether  any  provision  for  advance  allocation  of  natural  gas  to  CGD  areas  has  been  made under the new policy and if so, the details thereof; and
- (d) the steps being taken to ensure affordability and supply predictability for the urban and semiurban consumers under the new policy framework?

ANSWER पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

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

(a)  to  (d)  The  Government  reviews its policy from time to time for allocation of domestically produced natural gas to City Gas Distribution (CGD) entities.

Under the revised framework, effective from the first quarter of FY 2025-26, allocations for CNG (T) and PNG (D) segments are provisionally made on a two-quarter advance basis as against the earlier practice of allocating on a single-quarter basis. The scope of allocation now includesboth Administered Pricing Mechanism (APM)/ Non Administered Pricing Mechanism (NAPM)  gas  and  New  Well  Gas  (NWG)  from  nomination  fields  of  Oil  and  Natural  Gas Corporation Limited (ONGC).The earlier auction-based allocation for NWG has been replaced with a quarterly pro-rata allocation by GAIL (India) Limited to CGD entities in proportion to their  requirements,  in  accordance  with  prevailing  guidelines  of  the  Ministry  of  Petroleum  and Natural Gas.  This ensures  better  demand  forecasting,  efficient  supply  management,  and enhanced supply predictability for CGD entities.

Further, in order to minimize the impact of rising Natural Gas prices, the Government has approved  the  revised  domestic  natural  gas  pricing  guidelines  vide  Gazette  Notification  dated 07.04.2023 for gas produced from nomination fields of ONGC/OIL, New Exploration Licensing Policy  (NELP)  blocks,  and  pre-NELP  blocks,  where  the  Production  Sharing  Contract  (PSC) provides  for  Government  approval  of  prices.  Under  the  revised  guidelines,  the  price  of  such natural  gas  is  determined  as  10%  of  the  monthly  average  of  the  Indian  Crude  Basket  and  is notified on a monthly basis. For gas produced by ONGC and OIL from their nomination blocks, the  Administered  Price  Mechanism  (APM)  price  is  subject  to  a  floor  of  $4.0/Metric  Million British  Thermal  Unit  (MMBTU)  and  a  ceiling  of  $6.5/MMBTU.  The  ceiling  would  be maintained for the two financial years (2023-24 and 2024-25) and then increased by $0.25/MMBTU each year.  This has led to price stability for consumers.

****