The oil ministry has stopped making fresh allocation of natural gas from domestic fields to the city gas sector, threatening the viability of Rs 2 lakh crore investment planned in the sector besides leading to a hike in CNG and piped cooking gas prices to record levels, sources said.
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 have been maintained at March 2021 demand level.
Commenting on the issue, the ministry said it “is waiting for the updated data for the period October 2021 to March 2022 from CGD entities for the allocations in April 2022. This is yet to be received from the entities”.
