Government modifies city gas allocation facility

The Ministry of Petroleum and Natural Gas has modified the gas allocation policy for the city gas sector, allowing GAIL to import gas and buy from newer domestic fields to meet the increasing demand from the household and transport sectors. GAIL is expected to pool the price of natural gas from imported and new natural gas fields. This revised order also permits GAIL and other natural gas companies to supply natural gas from newer domestic fields, as well as imported gas, to households and the transportation segment, unlike the earlier order that only allowed na­tural gas from older fields under an administered price mechanism. Addi­tionally, according to the revised order, gas allocation to city gas distribution companies will be made on a three-month basis as against the erstwhile six-month basis.

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