The Government has ordered State gas utility GAIL India Ltd to cut natural gas supplies from non-priority sectors such as steel and petrochemicals so as to meet the full requirement of CNG retailers such as Indraprastha Gas Ltd.

The Petroleum Ministry in an order today said it has revised guidelines for the allocation/ supply of domestic natural gas to city gas distribution (CGD) entities for the CNG and piped cooking gas sector.

“...it has been decided to authorise GAIL to divert domestic gas from the non-priority sector to meet the requirement of the CNG (transport) and PNG (domestic) segment in line with their actual consumption,” the Ministry said in an order.

The gas would be supplied at uniform base price to each CGD entity.

GAIL will undertake the allocation exercise at the end of every six months and supply domestically produced gas to CGD entities based on their average consumption. Any increased requirement of the gas would be met by cutting supplies to non-priority sectors, the order said.

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