GAIL might cut gas supplies from non-priority areas for retail needs

New Delhi: The government has ordered stategas utility GAIL India Ltd to cut natural gas supplies of non- priority sectors like steel and petrochemicals so as to meet full requirement of CNG retailers like Indraprastha Gas Ltd.

The Petroleum Ministry in an order said it has revised guidelines for allocation/supply of domestic natural gas to city gas distribution (CGD) entities for CNG and piped cooking gas sector. "...it has been decided to authorise GAIL for diverting domestic gas from non-priority sector to meet the requirement of CNG (transport) and PNG (domestic) segment as per their actual consumption," the ministry said in an order.

The gas would be supplied at uniform base price to each CGD entity. GAIL will undertake allocation exercise after end of every six months and supply supply of domestically produced gas to CGD entities based on their average consumption. Any increased requirement of the gas would be met by cutting supplies of non-priority sectors, the order said.