Making persistent efforts to stabilise CNG prices amid global market turbulence: Hardeep Puri

CNG price control measures: Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said in Rajya Sabha on Monday, February 5, that the government continuously making efforts to stabilise Compressed Natural Gas (CNG) prices. Puri informed the upper house that the government has delinked Indian gas prices from international hubs in the US, Canada, UK, and Russia, aligning them instead with the Indian crude basket.

During the Question Hour, Minister Puri said the government's commitment to promoting CNG consumption as a cleaner fuel option. He highlighted that despite global price fluctuations, the government managed to rationalise CNG prices, ensuring affordability and sustainability.

Puri stated, “Our trilemma is to ensure availability, affordability, and sustainability, and the increased gas being provided will enhance the availability of gas in the transport sector.”

Delinking from international hubs

The government of India, in 2023, delinked Indian gas prices from international hubs in the US, Canada, the UK, and Russia. Gas prices are now aligned with the Indian crude basket, representing 10 per cent of the basket. The CNG prices were rationalised in April 2023, resulting in a significant reduction despite global price surges. Domestic gas prices remained 83 per cent lower during the specified period.

The government has increased the number of CNG stations from 738 in 2014 to 6,159, marking a remarkable growth of 735 per cent. The population covered by City Gas Distribution (CGD) has surged to 98 per cent from 12.81 in 2014, indicating a growth of 665 per cent.

Puri also said that the government closely monitors global energy markets and potential disruptions, considering the evolving geopolitical situation.

(With Reuters inputs.)