Page 39 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Government monitors LPG consumption through reports/MIS/consumption profile through
PPAC/OMCs. Additionally, various independent studies and reports have shown that PMUY scheme has
had a significant positive impact on the lives of rural households, especially women and families in rural
and remote areas. Some key benefits are briefly explained below:

(i) PMUY had resulted in a shift from traditional cooking methods that involve burning solid fuels like
wood, dung and crop residues. The use of cleaner fuel lowers indoor air pollution, leading to improved
respiratory health, particularly among women and children who are traditionally more exposed to
household smoke.

(ii) Households in rural areas, especially those in remote locations, often spend a significant portion of
their time and energy in collecting traditional cooking fuels. LPG has reduced drudgery and the time spent
on cooking by women of poor households. The free time, thus, available with them can be utilized in
multiple spheres for enhanced economic productivity.

(iii) Transition from biomass and traditional fuels to LPG reduces the dependency on wood and other
biomass for cooking purposes, leading to a decrease in deforestation and environmental degradation. This
benefits not only the households but also contributes to broader environmental conservation efforts.

(iv) With improved cooking facilities, there is a potential positive impact on nutrition. Families may find it
easier to cook a variety of nutritious meals, contributing to better overall health.

National Gas Grid Expansion Accelerated to Improve Energy Access Across India

Petroleum and Natural Gas Regulatory Board (PNGRB) is the authority to grant authorization to entities
to lay, build, operate and expand Natural Gas Pipelines (NGPL). With the aim to increase the availability
of natural gas across the Country, PNGRB has authorized approximately 34,233 km of NGPL network which
include common carrier, spur line, tie-in connectivity and dedicated pipeline across the country to various
entities, out of which 25,429 km have been made operational as on June 2025. 10,459 Kms length of
pipelines is under various stages of construction.

The Government have taken various measures to implement ‘One Nation, One Gas Grid’ which, inter-alia,
includes approving key trunk pipelines, providing viability gap funding in low-demand areas, introducing
a unified tariff, accelerating expansion of CGD network, setting up of Liquefied Natural Gas (LNG)
Terminals, allowing marketing and pricing freedom with a ceiling price to gas produced from high
pressure/high temperature areas, deep water & ultra-deep water and from coal seams, Sustainable
Alternative Towards Affordable Transportation (SATAT) initiative to promote Bio-CNG, etc.

Government continually reviews and coordinates with the concerned State Governments and executing
agencies to resolve the challenges and expedite the construction of National Gas Grid.

The expansion of gas pipeline networks o?ers enhanced access to clean, reliable and a?ordable energy,
improving household convenience, reducing dependence on traditional fuels across rural areas, industrial
clusters and City Gas Distribution (CGD) networks. In industrial areas, assured gas supply at competitive
prices strengthens manufacturing competitiveness, attracts new investments, reduces operational costs

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