NEW DELHI: The oil ministry has modified its gas allocation policy for the city gas sector, allowing state-owned GAIL (India) Ltd to import gas and buy from newer domestic fields to meet growing demand from households and transport sector.
GAIL will pool or average out the price of imported as well as newer field gas with the lower-priced regulated field gas to supply to city gas entities for sale as CNG to automobiles and piped natural gas to households, a ministry order said.
Till now, city gas entities were allocated natural gas from older fields, called the regulated or APM gas. To promote the sector, the Cabinet had in 2014-15 made city gas a ‘no-cut’ sector, which meant all demand of the sector would be met from domestic fields.
