Government to allocate additional 200 SCM gas in latest push for domestic PNG
The Indian government is offering city-gas distributors an allocation of lower-priced natural gas for every new piped natural gas connection they install. This incentive aims to reduce capital expenditure payback periods and accelerate the adoption of clean cooking fuel across households.
Why it matters
This policy shift is designed to lower energy costs for consumers while incentivizing infrastructure expansion in the domestic gas sector.
Seeking to further fuel its push for adoption of piped natural gas (PNG), the government on Tuesday (August 18, 2026) evening announced eligible city-gas distributors (CGDs) would be allocated an additional 200 standard cubic metres (SCM) of the lower-priced Administered Price Mechanism (APM) natural gas for every incremental billed domestic-PNG connection they scale, effective September 1.
Further, the government informed that this would be “over and above” the threshold level determined for the respective geographical area.
The objective here is to help CGDs offset their LNG-sourcing costs – by allocating additional APM gas – centred on accelerating domestic PNG connections. At present, the price of LNG continues to stay elevated because of the episodic tensions in West Asia.
The natural gas produced by India’s upstream majors, OIL and ONGC, from their conventional fields is referred to as APM gas.
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