Try GOLD - Free
Lack of pricing power, competition to hit city gas distribution firms
Business Standard
|November 29, 2024
The city gas distribution (CGD) sector has enjoyed favourable policies, high arbitrage versus alternative fuels, and pricing freedom in the past. However, recent cuts in administered pricing mechanism (APM) allocation and rising competition from electric vehicles are among the factors that have led to big corrections.
The policy vision is to have a 15 per cent share of the energy basket for gas (from 6 per cent), raising gas consumption to 500 million metric standard cubic meters per day (mmscmd) by 2030 (currently 200 mmscmd). There are 307 CGDs covering almost 100 per cent of the population. Compared with 800 compressed natural gas (CNG) stations in 2014, CNG stations have increased 9 times to over 7,200 now. Domestic piped natural gas (PNG) connections are up 5 times to 13.6 million. Targets are aggressive with up to 18,000 CNG stations (2.5 times from current levels) and 126 million (8 times more) domestic PNG connections by 2032.
This story is from the November 29, 2024 edition of Business Standard.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Business Standard
Business Standard
Bharat Forge signs ₹300 cr contract under EP-VI norms for army, navy
Bharat Forge Limited (BFL) has secured defence contracts worth ₹3300 crore under the Emergency Procurement-VI (EP-VI) framework for supplying indigenous unmanned systems to the security forces.
1 min
January 17, 2026
Business Standard
Centre likely to adjust ₹968 cr withheld tax
Tax authorities are set to adjust around ₹967.52 crore withheld in connection with Tiger Global’s exit from Flipkart, following a Supreme Court ruling that asked the US-based investor to pay around 214,500 crore in taxes, according to senior Central Board of Direct Taxes (CBDT) officials.
2 mins
January 17, 2026
Business Standard
Pakistan se azaadi
Pakistan not only has zero chance of catching up with India in most areas, but will inevitably see the gap rising. Its leaders will offer its people the same snake oil in different bottles
5 mins
January 17, 2026
Business Standard
Foreign investors’ interest in GIFT City may increase
India’s International Financial Services Centre (IFSC) at GIFT City in Gujarat could see higher interest from foreign investors as they reassess offshore structures after the Supreme Court’s Tiger Global ruling.
2 mins
January 17, 2026
Business Standard
Best suited for first-time equity investors seeking broad market exposure
Flexicap funds saw the sharpest rise in assets under management (AUM) among equity-oriented schemes in 2025.
2 mins
January 17, 2026
Business Standard
Reliance Retail reports 9.2% jump in operational revenue
Reliance Retail Ventures Ltd (RRVL) on Friday reported a 2.1 per cent year-on-year rise in net profit at ₹3,558 crore for the third quarter of 2025-26 (FY26).
1 mins
January 17, 2026
Business Standard
EPFO may employ third-party agents to resolve member grievances, queries
The Employees’ Provident Fund Organisation (EPFO) is likely to empanel third-party agents to help resolve queries and grievances of members, said two officials aware of the matter.
2 mins
January 17, 2026
Business Standard
Here comes the Sun-dance
Two short films set in South India will premiere at the largest independent film festival in the US. The debutant directors talk about their first steps into filmmaking
4 mins
January 17, 2026
Business Standard
SAT sets aside Sebi order on Bombay Dyeing, promoters
The Securities Appellate Tribunal (SAT) has set aside the Securities and Exchange Board of India’s (Sebi’s) October 2022 order against Bombay Dyeing and Manufacturing Company (BDMCL), and its promoters Nusli Wadia and sons Ness and Jehangir.
1 min
January 17, 2026
Business Standard
Margin pressures drag down RIL’s profit to 4-qtr low
Retail, oil & gas divisions remain laggards
3 mins
January 17, 2026
Listen
Translate
Change font size