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Jeet B Bhayani (SEBI RA)

28th Aug · SEBI-Registered Analyst

The Petroleum and Natural Gas Regulatory Board (PNGRB) is increasing its interaction with states to meet India's goal of 126.3 million piped natural gas (PNG) connections and 18,336 compressed natural gas (CNG) stations by 2034. The regulator has been conducting discussions with state officials to tackle operational and policy issues in the city gas distribution (CGD) sector, focusing on streamlining VAT on natural gas and urging states to implement comprehensive CGD policies. By July 2025, a total of 11 states, which include Uttar Pradesh, Tamil Nadu, Karnataka, Bihar, and Rajasthan, have announced policies and are collectively responsible for establishing 78.5 million PNG connections and 10,131 CNG stations by 2034. PNGRB observed that these policy actions are producing outcomes, as CNG vehicle counts increased by almost 25% from March 2023 to March 2025, reaching 8.2 million. This growth led to a 21% rise in gas sales and the establishment of 1,206 new CNG stations in 2024-25. During that time, approximately 2.1 million new PNG connections were established across the country, resulting in an 11% increase in gas sales. The regulator emphasized that simplifying state-level policies and tax systems is essential for maintaining progress in clean fuel use and enhancing natural gas infrastructure nationwide

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