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 trillion 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.
Besides, the process of allocating gas on a six-monthly average drawl also is punishing the CGD entities driving growth.
