Archive · 17 Dec 2025
India's Natural Gas Consumption Declines Amid Policy Changes
India's use of natural gas has gone down in the first seven months of the financial year 2026.
The government wants to increase the use of natural gas to 15% by 2030, but it's not happening as fast as planned.
The main reasons for the drop in use are less need for gas-based power plants because of a long monsoon, cheaper alternative fuels, and no new fertilizer plants.
However, the government is trying to help by making the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) cheaper starting from January 1, 2026.
This is expected to help people who use CNG in their cars and PNG in their kitchens.
The government is also working to make sure that the savings from lower gas transportation costs are passed on to the consumers.
India's natural gas consumption fell 8.6% annually in April-October FY26, declining to 40,068 mmscm.
The power sector's reduced demand due to a prolonged monsoon contributed to the decline.
Lower prices of alternative fuels like LPG and crude oil also hampered demand.
The government aims to increase the share of natural gas in the energy basket to 15% by 2030.
PNGRB reduced gas transportation tariffs, expected to lower CNG and PNG prices from January 1, 2026.
- Who
- Indian government, PNGRB, energy sector experts, consumers
- What
- Decline in natural gas consumption and reduction in gas transportation tariffs
- When
- April-October FY26, January 1, 2026 (tariff change)
- Where
- India
- Why
- Reduced demand from power sector, lower prices of alternative fuels, and no new fertilizer plants; government aims to increase natural gas share in energy basket
- Current Share of Natural Gas
- 6.2%
- Target Share by 2030
- 15%
- Consumption in April-October FY26
- 40,068 mmscm
- Consumption in April-October FY25
- 43,583 mmscm
- October 2025 Consumption
- 5,722 mmscm
- October 2024 Consumption
- 6,699 mmscm
- FY25 Total Consumption
- 71,314 mmscmd
- FY24 Total Consumption
- 67,512 mmscmd
- New Gas Transportation Tariff (Zone 1)
- Rs 54
- Previous Gas Transportation Tariffs
- Rs 42, Rs 80, Rs 107
