The Petroleum and Natural Gas Regulatory Board (PNGRB) is stepping up engagement with states to achieve India’s target of 126.3 million piped natural gas (PNG) connections and 18,336 compressed natural gas (CNG) stations by 2034. The regulator has been holding meetings with state leadership to address operational and policy challenges in the city gas distribution (CGD) sector, with emphasis on rationalising VAT on natural gas and encouraging states to adopt comprehensive CGD policies. As of July 2025, 11 states, including Uttar Pradesh, Tamil Nadu, Karnataka, Bihar, and Rajasthan, have notified policies, and together they have been tasked with achieving 78.5 million PNG connections and 10,131 CNG stations by 2034.
PNGRB noted that these policy measures are already yielding results, with CNG vehicle numbers rising by nearly 25% between March 2023 and March 2025 to 8.2 million. This expansion contributed to a 21% increase in gas sales and the addition of 1,206 new CNG stations during 2024-25. In the same period, around 2.1 million new PNG connections were added nationwide, leading to an 11% rise in gas sales. The regulator underlined that streamlining state-level policies and tax structures is crucial for sustaining momentum in clean fuel adoption and expanding natural gas infrastructure across the country.
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