Core Economy Sector Watch: Year-End Review 2024 of India’s Petroleum Sector–Ministry of Petroleum and Natural Gas
- 10.33 Crore Connections Under PMUY: The Pradhan Mantri Ujjwala Yojana (PMUY) now supports over 10.33 crore households, having a significant impact on the sector.
- LPG Connections Growth: The number of LPG connections soared from 14.52 crore in 2014 to 32.83 crore in 2024, marking a 100% increase in India’s petroleum sector.
- Natural Gas Pipeline Expansion: Operational natural gas pipeline length increased from 15,340 km in 2014 to 24,945 km in 2024.
- E20 Petrol Availability: More than 17,400 retail outlets across India now dispense E20 petrol, a major milestone for the sector.
The Ministry of Petroleum and Natural Gas focuses on exploring and producing oil and natural gas, refining, and distribution. As oil and gas imports are crucial to our economy, the ministry implements initiatives to enhance domestic petroleum production. These initiatives aim for energy access, efficiency, sustainability, and security. Here’s a review of the ministry’s progress in the past year in the petroleum sector:
1. Pradhan Mantri Ujjwala Yojana (PMUY) to Support India’s Petroleum Sector
- The PMUY benefits 10.33 crore families.
- The initiative has delivered 222 crore LPG refills.
- Ujjwala households now take about 13 lakh LPG refills daily.
- The government provides a targeted subsidy of INR300 per cylinder.
- LPG consumption among Ujjwala families has increased; per capita consumption rose from 3.01 cylinders in 2019-20 to 4.34 in 2024.
2. LPG Coverage to Boost the Petroleum Sector
- LPG connections increased from 14.52 crore in 2014 to 32.83 crore as of November 2024, a 100% growth.
- Approximately 30.43 crore LPG consumers are enrolled under the PAHAL scheme.
- Over 1.14 crore customers have opted out of the LPG subsidy through the ‘GiveItUp’ campaign, which impacts the overall petroleum sector.
- LPG distributors grew from 13,896 to 25,532, with over 90% of new distributors serving rural areas.
3. India’s Petroleum Sector Highlight: Facilities at Retail Outlets
- Under the Digital Payment initiative, 1,03,224 e-wallet facilities exist at 84,203 retail outlets.
- All 84,203 retail outlets accept payments via BHIM UPI.
- Under Swachh Bharat Mission, 83,618 retail outlets now have toilet facilities, including separate ones for people of different genders.
- Oil marketing companies (OMCs) commissioned 3,097 door-to-door delivery bowsers.
- OMCs have installed 17,939 electric vehicle (EV) charging stations across India.
4. Natural Gas Pipelines
- The operational natural gas pipeline length expanded from 15,340 km in 2014 to 24,945 km as of September 2024, an essential development in India’s petroleum sector.
- Ongoing projects aim to add approximately 10,805 km of natural gas pipelines, enhancing the national gas grid and strengthening the petroleum sector.
5. Unified Pipeline Tariff
- The Petroleum and Natural Gas Regulatory Board (PNGRB) amended regulations to introduce a unified natural gas tariff.
- The levelized Unified Tariff is set at INR80.97/MMBTU as of July 2024.
6. City Gas Distribution (CGD) Coverage
- PNGRB authorized 307 geographical areas for CGD infrastructure development.
- As of September 2024, there are 1.36 crore PNG (Domestic) connections and 7,259 CNG stations.
7. SATAT Initiatives
- As of November 2024, 80 CBG plants are functional, with 72 more in various construction stages.
- The ministry launched new guidelines for integrating CBG into the CGD network.
8. Review of Domestic Gas Allocation
- New CGD gas allocation guidelines help reduce price volatility and increase PNG supply to meet growing demand.
9. Domestic Gas Pricing
- The government revised gas pricing guidelines in April 2023, ensuring beneficial pricing for domestic users.
10. Biofuels and Ethanol Blending
- Ethanol supply increased from 38 crore liters in 2013-14 to 707.4 crore liters in 2023-24, positively impacting India’s petroleum sector.
- E20 petrol is now available at over 17,400 retail outlets.
- The EBP program resulted in major benefits for farmers and significant financial savings.
11. Refining Capacity
- India operates 22 refineries, with a total refining capacity of 256.8 million metric tonnes per annum (MMTPA).
12. Exploration and Production Initiatives
- The Open Acreage Licensing Program (OALP) launched in March 2016 facilitates hydrocarbon exploration, enhancing the petroleum sector.
- As of FY 2023-24, gas production increased to 36.44 BCM.
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Source
Press Information Bureau: Year End Review 2024- Ministry of Petroleum and Natural Gas
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