Petroleum and Natural Gas Regulatory Board (PNGRB) has released the report of the High-Level Expert Committee on Natural Gas, offering major relief and opportunity for city gas distributors like Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL). The panel has strongly recommended the restoration of Administered Price Mechanism (APM) gas allocation for the CNG (transport) segment to help reduce costs and improve affordability of cleaner fuel options across major cities.
The report also proposes recognising compressed natural gas (CNG) as a key clean fuel under India’s Vehicle Scrappage Policy, which could further encourage the transition toward environmentally sustainable urban mobility. In a significant push for cleaner transportation, the committee recommends mandatory adoption of CNG in public and commercial vehicles, especially in cities with high pollution levels, along with clear fleet conversion deadlines.
Additionally, the panel has suggested extending the operational life of CNG-retrofitted trucks by five years, offering operators financial and operational flexibility. If accepted, these measures may sharply increase CNG demand, expand city gas penetration, and strengthen India’s effort toward reducing vehicular emissions and achieving its clean energy transition goals.
