India’s demand for pure fuel might practically double by 2030 if progress stays regular, insurance policies are supportive, and investments proceed to develop, Petroleum and Pure Fuel Regulatory Board (PNGRB) chairperson Anil Kumar Jain stated on Wednesday.
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Jain, who was talking to reporters on the sidelines of the second PNGRB nationwide conclave on pure fuel and petroleum merchandise infrastructure in Gandhinagar, stated the Metropolis Fuel Distribution (CGD) community was anticipated to drive this development.
“Currently, India consumes 190 million metric standard cubic metres per day (MMSCMD) of natural gas. Based on current global and domestic trends, this is projected to rise to 297 MMSCMD by 2030. However, if conditions are favorable, the demand could grow even further to 365 MMSCMD,” he added.
Jain stated PNGRB has granted licences by a bidding course of to develop the CGD community, with a aim of organising 17,000 CNG stations and offering 12 crore home pipeline connections by 2030. The board, which regulates numerous elements of the petroleum and pure fuel trade, is working to develop pipeline infrastructure.
PNGRB is a statutory physique mandated to manage the refining, processing, storage, transportation, distribution, advertising and marketing and sale of petroleum, petroleum merchandise and pure fuel.
“Currently, 10,000 km of natural gas pipelines have been approved for cross country networks, requiring an investment of ₹40,000-50,000 crore over the next three to five years. Additionally, ₹30,000 crore has been committed to city gas distribution infrastructure, with ₹400 crore allocated per district,” he stated.
Nevertheless, there are challenges to pure fuel adoption. Jain identified that fuel costs had been past PNGRB’s management and that the exclusion of pure fuel from the Items and Providers Tax (GST) regime provides additional complexity. He urged states to think about tax reductions, provided that pure fuel is a cleaner gasoline choice.
The sector has proven regular development, with metropolis fuel distribution increasing at a 12% compound annual development fee (CAGR) between 2015-16 and 2023-24. Equally, use of pure fuel within the industrial phase has grown 12.7% CAGR on this interval.
The CGD community bidding course of focuses on three predominant targets: the variety of CNG stations to be arrange, the variety of households to be linked to home pipelines, and the whole size of fuel pipelines to be put in in cities and districts. Corporations awarded bids in 2023 have seven years to realize these targets.
Excessive infrastructure prices pose a big barrier, with pipeline connection bills in some areas reaching 32,000 rupees per family, he stated. India at present imports practically half of its fuel wants as liquefied pure fuel, which follows world pricing norms.
“We need to have a shift in our perspectives where we need to start regarding the pipeline infrastructure as Profit Centres rather than Cost Centres. Past few years have proved India’s capability to build world class oil, gas and petroleum infrastructure while keeping sustainable development growth goals in mind,” Jain stated whereas talking on the conclave.