Executive Summary:
The Minister of Petroleum and Natural Gas addressed concerns regarding the availability of CNG and PNG infrastructure, especially in rural areas, rising fuel prices, and the promotion of clean energy. The response outlines government initiatives to expand CNG/PNG networks, promote alternative fuels like ethanol and CBG, support electric mobility, and ensure affordable LPG access through schemes like PMUY. The ultimate goal is to provide affordable and clean fuel while reducing dependence on fossil fuels.
Key Points / Main Content:
CNG/PNG Infrastructure:
* City Gas Distribution (CGD) networks are being developed by authorized entities, covering almost 100% of mainland India (excluding islands).
* As of May 31, 2025, over 1.50 crore domestic PNG connections have been provided, and over 8,000 CNG stations have been commissioned.
* Domestic gas is prioritized for CNG and PNG sectors, with measures like diverting gas from non-priority sectors and expanding the National Gas Grid Pipeline.
* Gas produced from deep water, ultra-deep water, and high-pressure/high-temperature areas is prioritized for CNG/PNG sectors.
LPG Affordability and Access:
* Pradhan Mantri Ujjwala Yojana (PMUY) provides deposit-free LPG connections to women from poor households (10.33 crore connections as of July 1, 2025).
* Efforts are underway to raise awareness about PMUY and address LPG usage issues through campaigns, melas, and awareness programs.
* The government provides a targeted subsidy on LPG cylinders for PMUY consumers (Rs. 300 per 14.2 kg cylinder as of October 2023), making it available at an effective price of Rs. 553 in Delhi.
* As of July 1, 2025, there are 25,573 LPG distributorships nationwide, with 17,646 serving rural areas, supported by 213 LPG bottling plants.
Fuel Pricing and Alternatives:
* Petrol and diesel prices are market-determined by Public Sector Oil Marketing Companies (OMCs) based on international market prices.
* The government has reduced central excise duty on petrol and diesel in the past and implemented freight rationalization to benefit consumers in remote areas.
* Ethanol blending in petrol is promoted to reduce dependence on fossil fuels.
* Alternative fuels like LNG, Green Hydrogen, and CBG are also being promoted.
Electric Mobility:
* The National Electric Mobility Mission Plan (NEMMP) 2020 aims to promote the adoption and manufacturing of electric vehicles.
* The Ministry of Heavy Industries (MHI) is implementing schemes like PLI Auto, PM EDRIVE, PM eBusSewa, and SPMEPCI to strengthen the EV ecosystem.
* OMCs have established 4,523 EV charging stations at their retail outlets under the FAME-II scheme and an additional 20,035 from their own funds as of January 1, 2025.
Impact Analysis:
Citizens:
Impact: Affected by the availability and pricing of CNG, PNG, LPG, petrol, and diesel. Also impacted by the expansion of electric mobility infrastructure and incentives.
Action Required: To take advantage of available schemes like PMUY for affordable LPG and consider electric vehicles with the expansion of charging infrastructure.
Oil Marketing Companies (OMCs):
Impact: Responsible for pricing petrol and diesel, expanding CNG/PNG infrastructure, blending ethanol, setting up EV charging stations, and implementing government schemes.
Action Required: Continue expanding CNG/PNG networks, promote ethanol blending, establish more EV charging stations, and effectively implement government schemes like PMUY.
Petroleum and Natural Gas Regulatory Board (PNGRB):
Impact: Responsible for authorizing entities for CGD network development and ensuring they meet Minimum Work Programme (MWP) targets.
Action Required: Continue authorizing and monitoring CGD network development to ensure expansion targets are met.
Ministry of Heavy Industries (MHI):
Impact: Responsible for implementing schemes to promote electric vehicle manufacturing and adoption.
Action Required: Continue implementing and refining schemes like PLI Auto and PM EDRIVE to strengthen the EV ecosystem.
Rural and Backward Regions:
Impact: Benefit from the expansion of CNG/PNG infrastructure, LPG access through PMUY, and improved fuel availability and pricing.
Action Required: Participate in awareness campaigns and utilize available resources to access CNG/PNG connections and affordable LPG.
Key Entities Referenced
Compressed Natural Gas (CNG): A fuel used as an alternative to gasoline or diesel, especially in vehicles, and supplied through a distribution network.
Piped Natural Gas (PNG): Natural gas supplied to households and commercial establishments through a pipeline network for cooking and other purposes.
Petroleum and Natural Gas Regulatory Board (PNGRB): The regulatory body responsible for authorizing entities for the development of City Gas Distribution (CGD) networks.
Pradhan Mantri Ujjwala Yojana (PMUY): A government scheme launched in May 2016 to provide deposit-free LPG connections to adult women from poor households across the country.
Ethanol Blended Petrol (EBP) Programme: A government initiative promoting the blending of ethanol with petrol to reduce dependence on fossil fuels and promote environmental sustainability.
National Electric Mobility Mission Plan (NEMMP) 2020: A roadmap for the adoption and manufacturing of electric vehicles in India, aiming to enhance national fuel security and promote environment-friendly transportation.
Delhi: The capital of India, used as a reference for petrol and diesel prices in the policy text.
Liquefied Petroleum Gas (LPG): A mixture of propane and butane, used as a fuel in heating appliances and vehicles.
LOK SABHA
UNSTARRED QUESTION No. 2047
TO BE ANSWERED ON 31st July, 2025
AVAILABILITY OF CNG AND PNG INFRASTRUCTURE
2047. SHRI ZIA UR REHMAN:
SHRI CHHOTELAL:
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 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(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेशगोपी)
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 prioritybasis 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 (PLI-
Auto), 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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