Lok Sabha Question No. 72 (UNSTARRED), answered on 2026-01-29
Subject: Availability of CNG and PNG in Bihar
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Rajesh Ranjan

TO BE ANSWERED ON 29 th  January, 2026

## AVAILABILITY OF CNG AND PNG IN BIHAR

## †72. SHRI RAJESH RANJAN:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a)  whether the supply of Compressed Natural Gas (CNG)/natural gas is still limited in various States of the country due to which consumers and the transport sector are facing severe issues of high prices and availability, if so, the details thereof;
- (b)  whether  the  Government  has  prepared  any  special  plan  for  setting  up  CNG  stations  and expanding the Piped Natural Gas (PNG) network in rural and semi-urban areas, particularly in Eastern India and the Seemanchal regions of Bihar, if so, the details thereof;
- (c)  the regulatory measures taken by the Government for controlling CNG prices, regulating the distribution system and preventing companies from charging arbitrary prices; and
- (d)  whether any policy, budgetary provision or timeline has been fixed for establishing new interconnected CNG/PNG stations within a radius of 150 Kilometres at present if so, the details thereof and the timeframe for inclusion of Purnia and the Seemanchal region of Bihar therein?

## 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) Petroleum and Natural Gas Regulatory Board (PNGRB) grants authorization to various entities to Lay, build, operate and expand Natural Gas Pipelines (NGPL). As on September 2025, PNGRB has authorized approximately 34,238 km of NGPL network (including common carrier, spur line, tie-in connectivity and dedicated pipelines) with a view to create a National Gas Gridand increase the availability of natural gas across the country. Out of this, about 25,923 km has been made operational. All the States and Union Territories, except Ladakh, Andaman & Nicobar Island and Lakshwadeep are covered by Natural Gas Pipeline Network authorized by PNGRB.

Providing Piped Natural Gas (PNG) connections, establishment of Compressed Natural Gas (CNG) stations  and laying of pipeline infrastructure is part of  the development  of City  Gas Distribution (CGD) Network, which is carried out by the entities authorized by PNGRB as per their Minimum Work Programme  (MWP) and techno-commercial  feasibility.  After  completion  of  12/12A  CGD bidding  round,  PNGRB  has  authorized  entities  for  the  development  of  CGD  network  in  307

Geographical Areas (GAs), covering the entire mainland area (including rural and semi-urban areas of Eastern India and the Seemanchal regions of Bihar) for the development of CGD network across the country.

Several  districts  adjoining  Purnia  and  the  wider  Seemanchal  region  are  part  of  Araria,  Purnia, Katihar  and  Kishanganj  Districts  GA,  which  has  been  authorized  by  PNGRB  to  Indian  Oil Corporation  Limited  (IOCL)  for  the  development  of  CGD  network  in  March,  2019.  As  per  the MWP, CGD entity has committed to provide 30520 PNG(D) connections and establish 79 CNG stations in the GA by 2030. As on 30.11.2025, the authorised entity has provided 14978 PNG(D) connections  and  established  11  CNG  stations  in  the  GA.  No  budget/fund  is  released  by  the Government for CGD projects. The project cost for CGD projects is borne by the concerned CGD entities as per their MWP and techno-commercial feasibility.

The  supply  and  availability  of  Natural  Gas  may  vary  across  states  depending  upon  NGPL connectivity  and  CGD  infrastructure.  The  Government  continually  reviews  and  coordinates  with the concerned State Governments and executing agencies to expedite the completion of National Gas Grid and CGD infrastructure.

Government have taken various steps to ensure the availability and affordability of Natural Gas to CNG  (Transport)/  PNG  (Domestic)  sector  in  the  country  which, inter-alia ,  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, grant of Public  Utility  Status  to  CGD  projects,  notification  for  supply  of  domestic  gas  through  available mode (including cascade mode) for CNG(T)/ PNG(D) purpose, allocating domestic natural gas for CNG (T) and PNG (D) segments on a two-quarter advance basis, expansion of National Gas Grid Pipeline, setting up of Liquefied Natural Gas (LNG) Terminals, Sustainable Alternative Towards Affordable  Transportation  (SATAT)  initiatives  to  promote  Bio-CNG,  etc.  Government  has  also notified that gas produced from discoveries in Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, in any situation which may require proportionate distribution of the gas offered under the bidding process, the contractor shall offer gas to bidders belonging to CNG (T)/ PNG (D) sector on priority.

The Government does not fix the prices of CNG. The retail selling price (RSP) of CNG in any city is  determined  by  the  concerned  CGD  entity  authorized  by  PNGRB  after considering  cost  of  gas procured,  state  taxes,  tariff  and  other  components.  The  Government,  in  2014,  directed  all  CGD entities to display break-up of CNG price at CNG stations and to furnish the break-up of PNG (D) price in invoices, indicating Cost of gas to the CGD entity, Supply and Distribution Cost, Entity's margin, Excise duty, VAT, any other Tax.

In order to minimise the impact of rising Natural Gas prices, the Government have approved the revised domestic natural gas pricing guidelines in 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 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  next  two financial  years (2023-24 and 2024-25) and then increased by $0.25/MMBTU each year. Further,

Government also permitted a premium of 20% over the Administered Price Mechanism prices on gas produced from new well and well interventions of Oil and Natural Gas Corporation Limited & Oil India Limited from their nomination fields. This has led to price stability for consumers.

Further, PNGRB, has rationalised the Unified Tariff by reducing tariff zones from three to two and notified transportation tariffs of Rs. 54/MMBTU  for  Zone-1 (up to 300 km) and Rs. 102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has been extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportation charges  for consumers beyond 300 km. This reform further improves affordability and equity in access to natural gas.

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