**Executive Summary**
This document presents the answer to Unstarred Question No. 72 in the Lok Sabha, concerning the availability of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Bihar, answered on January 29, 2026. The Minister of State in the Ministry of Petroleum and Natural Gas provides details on the expansion of NGPL and CGD networks, regulatory measures, and government initiatives to ensure the availability and affordability of natural gas. 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. The entity is committed to providing 30520 PNG(D) connections and establish 79 CNG stations in the GA by 2030.
**Key Points / Main Content**
* **NGPL Network Expansion:**
* The Petroleum and Natural Gas Regulatory Board (PNGRB) authorizes entities to lay, build, operate, and expand Natural Gas Pipelines (NGPL).
* As of September 2025, PNGRB has authorized approximately 34,238 km of NGPL network.
* About 25,923 km of the authorized network is operational.
* All States and Union Territories, except Ladakh, Andaman & Nicobar Island and Lakshwadeep, are covered by the authorized NGPL network.
* **CGD Network Development:**
* Providing PNG connections, establishing CNG stations, and laying pipeline infrastructure are part of the City Gas Distribution (CGD) network development.
* This development is carried out by entities authorized by PNGRB as per their Minimum Work Programme (MWP) and techno-commercial feasibility.
* After the 12/12A CGD bidding round, PNGRB has authorized entities for the development of the CGD network in 307 Geographical Areas (GAs).
* The 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
* **Government Initiatives:**
* The Government continually reviews and coordinates with State Governments and executing agencies to expedite the completion of the National Gas Grid and CGD infrastructure.
* The Government has allocated domestic gas on priority to CNG (Transport)/ PNG (Domestic) and diverted domestic gas from non-priority sectors to meet their requirements.
* Other initiatives include the expansion of CGD network, granting Public Utility Status to CGD projects, and promoting Bio-CNG through the SATAT initiative.
* **CNG Pricing:**
* The Government does not fix the prices of CNG.
* The retail selling price (RSP) of CNG is determined by the concerned CGD entity, considering the cost of gas procured, state taxes, tariff, and other components.
* CGD entities are directed to display the break-up of CNG price at stations and furnish the break-up of PNG (D) price in invoices.
* **Revised Natural Gas Pricing Guidelines (2023):**
* The Government approved revised guidelines to minimize the impact of rising natural gas prices.
* The price of natural gas is determined as 10% of the monthly average of the Indian Crude Basket, subject to a floor of $4.0/MMBTU and a ceiling of $6.5/MMBTU for gas produced by ONGC/OIL from their nomination blocks.
* 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.
* **Unified Tariff Rationalization:**
* PNGRB has rationalized the Unified Tariff by reducing tariff zones.
* Transportation tariffs are 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), reducing transportation charges for consumers beyond 300 km.
**Impact Analysis**
**CNG/PNG Consumers:**
* **Impact:** Improved availability and affordability of natural gas, potentially leading to lower energy costs. Increased transparency in pricing.
* **Action Required:** Monitor CNG/PNG prices and invoices to understand the cost components.
**Transport Sector:**
* **Impact:** Improved availability of CNG, potentially reducing fuel costs and promoting cleaner transportation.
* **Action Required:** Evaluate the benefits of switching to CNG vehicles.
**City Gas Distribution (CGD) Entities:**
* **Impact:** Must adhere to PNGRB regulations and Minimum Work Programme (MWP) for network development. Required to display CNG price break-up.
* **Action Required:** Expand CGD network as per MWP and provide transparent pricing. Comply with the revised natural gas pricing guidelines.
**Petroleum and Natural Gas Regulatory Board (PNGRB):**
* **Impact:** Increased responsibility for overseeing the NGPL and CGD network development. Ensuring compliance with regulations.
* **Action Required:** Continue to monitor and enforce regulations related to NGPL and CGD network development and pricing.
**Government (Ministry of Petroleum and Natural Gas):**
* **Impact:** Responsible for policy formulation and coordination with State Governments and executing agencies.
* **Action Required:** Expedite completion of the National Gas Grid and CGD infrastructure. Continue to monitor and adjust natural gas pricing policies.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board (PNGRB): The regulator granting authorization for Natural Gas Pipelines (NGPL) and City Gas Distribution (CGD) networks.
City Gas Distribution (CGD) Network: The network for distribution of piped natural gas (PNG) and compressed natural gas (CNG) to consumers.
Piped Natural Gas (PNG): Natural gas distributed through pipelines to households and other consumers.
Compressed Natural Gas (CNG): Natural gas compressed and used as fuel, particularly in the transport sector.
Bihar: Indian state with a focus on the Seemanchal region, where availability of CNG and PNG is being discussed.
LOK SABHA
UNSTARRED QUESTION No. 72
TO BE ANSWERED ON 29th January, 2026
AVAILABILITY OF CNG AND PNG IN BIHAR
†72. SHRI RAJESH RANJAN:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
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 inter-
connected 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(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेश 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 307Geographical 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.
***