Page 42 - Policy Economic Report_Jan 25
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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
? Ministry has also issued detailed guidelines for procurement of Biomass Aggregation
Machinery (BAM) on 2nd February 2024. The Scheme envisages financial support to the
CBG producers for procuring Biomass Aggregation Machineries.
? Government has announced phase wise mandatory selling of CBG in CNG (T) and PNG (D)
segment of CGD network to promote the production and utilization of CBG.CBG
Obligation (CBO) is presently voluntary till FY 2024-2025 and mandatory selling obligation
would start from FY 2025-26. CBO shall be kept as 1%, 3% and 4% of total CNG/PNG
consumption for FY 2025-26, 2026-27 and 2027-28 respectively. From 2028-29 onwards
CBO will be 5%.
8. REVIEW DOMESTIC GAS ALLOCATION FOR CGD ENTITIES
o To cater the growing demand of CGD sector and to protect the common people from price
volatility, the Government has released new CGD sector Gas allocation Guidelines wherein the
allocation of PNG (Domestic) segment was increased (i.e. 105% of PNGD consumption in the
previous quarter) and balance available volume to be supplied to CNG (T) segment on prorate
basis.
o The revised methodology has been helpful for the CGD entity as the lag between the allocation
and reference period has been reduced from average of 6 months to average of 3 months which
reflects a more realistic consumption data.
9. DOMESTIC GAS PRICING
o Revised guidelines have been issued in April 2023 for gas produced from nomination fields of
ONGC/OIL, New Exploration Licensing Policy (NELP) blocks and pre-NELP blocks, where
Production Sharing Contract (PSC) provides for Government's approval of prices.
o The price of such natural gas shall be 10% of the monthly average of Indian Crude Basket and shall
be notified on a monthly basis and shall have a floor and a ceiling.
o The reduced gas price shall positively impact the domestic, Fertilizer and power consumers.
10. BIO FUELS AND ETHANOL BLENDING
o Under Ethanol Blended Petrol (EBP) Programme, supplies of ethanol has increased from 38 crore
litres in Ethanol Supply Year (ESY) 2013-14 to 707.40 crore litres in ESY 2023-24, thereby achieving
an average blending of 14.60% ethanol in Petrol. For the ongoing ESY (2024-2025), Ethanol
blending have further improved to 16.23% as on 29.12.2024. The Public Sector OMCs have started
dispensing E20 petrol (20% ethanol in petrol) at more than 17,400 retail outlets across the
country.
o In the last ten years, EBP programme has translated into forex impact of over Rs.1,08,600/- crore,
net CO2 reduction of 557 Lakh Metric Tonnes (LMT) and expeditious payment to farmers to a tune
of over Rs. 92,400/- crores.
o During April to November 2024, OMCs have procured 36.68 crore litres of biodiesel for the bio-
diesel blending programme as against 29.25 crore litres during April to November 2023.
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