Gas firms seek price deregulation as city distribution targets fall behind

International gas prices, typically one-sixth of oil prices, have risen since late 2021, touching $100 per barrel

Irked by the sluggish rollout of city gas distribution (CGD) networks in India, the Petroleum and Natural Gas Regulatory Board (PNGRB) has warned companies to expedite their efforts or risk having their bank guarantees seized.

In response, the companies have expressed hesitancy in committing investments without clear government guidance on the time frame during which natural gas will have free play in the economy, according to sources. Oil and gas companies have provided bank guarantees worth Rs 35,000 crore, and while PNGRB has not specified whose funds could be seized, the slow pace of progress is evident.

PNGRB officials have not commented