The auction-based allocation for NWG has been changed with a quarterly pro-rata allocation to guarantee well timed and dependable provide
The Ministry of Petroleum & Pure Gas (MoPNG) on Friday mentioned that metropolis gasoline distribution (CGD) firms might be allotted pure gasoline two quarters in advance to assist them in higher demand forecasting, environment friendly provide administration and guaranteeing provide predictability.
With a spotlight on guaranteeing the sustained availability and affordability of pure gasoline for key public-facing segments—Compressed Pure Gas (CNG) utilized in transport and Piped Pure Gas (PNG) utilized in home households for cooking—the MoPNG has launched essential enhancements to the home gasoline allocation coverage, the Ministry mentioned.
“From Q1 FY26, home pure gasoline allocations for CNG (T) and PNG (D) segments might be performed on a two-quarter advance foundation. Allocation may also now embrace New Properly Gas (NWG) from nomination fields of ONGC and Oil India. Estimations by GAIL and ONGC will assist guarantee provide visibility to CGD entities in advance, enhancing planning and supply effectivity,” it added.
In addition to, the auction-based allocation for NWG has been changed with a quarterly pro-rata allocation to guarantee well timed and dependable provide. GAIL will allocate NWG to CGD entities in proportion to their necessities, in accordance with prevailing MoPNG pointers.
The Ministry emphasised that regardless of growing demand within the CGD sector, allocation ratios of home gasoline have broadly been maintained.
As an illustration, it mentioned that for Q3 FY25, 54.68 per cent of the projected demand was allotted. Equally, for Q1 FY26 and Q2 FY26, 55.68 per cent and 54.74 per cent of the demand (Projected) has been allotted.
“As each APM gasoline and New Properly Gas costs are linked to Indian Crude Basket costs, calculated month-to-month, with the latest decline in crude costs, this allocation of home gasoline would make pure gasoline extra inexpensive for CNG (T) and PNG (D) customers,” the Ministry mentioned.
Strategic measures
These strategic measures will lead to enhanced capacity of CGD entities to forecast demand and handle provide effectively, improved provide predictability and higher affordability for CGD firms due to crude-linked pricing.
These measures will guarantee a secure, inexpensive, and clear home gasoline provide system for the essential transport and home segments below the CGD community.
The event comes after GAIL had knowledgeable the CGD firms in regards to the 15-20 per cent reduce in administered worth mechanism (APM) gasoline from April 16 due to a fall in manufacturing at ONGC. The misplaced volumes have been provided from NWG.
Sehul Bhatt, Director of Analysis at Crisil Intelligence, mentioned “The latest discount in allocation of APM gasoline for CNG will probably immediate CNG gamers to hike costs by ₹1-2 per kg to keep their margins. Following the 15-20 per cent discount from the second fortnight of April, CNG gamers have to procure from new effectively gasoline, troublesome fields and imported LNG.”
In addition to, the most recent discount takes the cumulative discount in allocation for the reason that starting of final fiscal to round 45 per cent amid a number of revisions. Over this era, whereas most gamers have elevated retail CNG costs by ₹2-5 per kg, some have absorbed a part of the hike to keep quantity progress regardless of the dent on margins, he added.
Revealed on April 18, 2025
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