The oil ministry has not made any fresh allocation of natural gas from domestic fields to the city gas sector, sending CNG and piped cooking gas prices to record highs but the ministry insisted that allocations have not been stopped and providing more for the sector would lead to cut in supplies to industries like power and fertiliser.
Despite a decision of the Union Cabinet to give 100 per cent gas supply under ‘no cut’ priority to the city gas distribution (CGD) sector, current supplies are at March 2021 demand level. This has driven city gas operators to buy high priced imported LNG to make up for the shortfall, leading to a record spike in prices, three sources aware of the matter said.
