CNG-PNG supply hit in Lucknow as prices of natural gas rise due to Russia-Ukraine conflict

In a fallout of the rise in prices of natural gas due to the ongoing Russia-Ukraine war, Green Gas Limited (a joint venture of GAIL and Indian Oil Corporation) has reduced the supply in Lucknow by 20 per cent.

According to official sources, GGL supplies 1.45 lakh kg of CNG and PNG in Lucknow on regular days, but due to the surge in international prices, the supply has been decreased by up to 15,000-20,000 kg per day.

"The reduction in supply of CNG and PNG will have a direct impact on nearly 4,000 CNG-run vehicles and 60 industrial units set up within the city limits. We have asked the industrial units to make necessary arrangements and switch their operations to commercial LPG or diesel, as there is no clarity on the restoration of supply by GAIL," an official said.

He added that if the price of natural gas continued to rise, the rates of piped gas services for domestic usage would also go up.

Currently, the charges for piped gas service for domestic use is Rs 38.5 per SCM (standard cubic metre) up to 45 SCM and Rs 46.33 per SCM above 45 SCM.

A senior official in GAIL said, "India imports a major chunk of its natural gas from Qatar. Some part of the demand is met from the wells in Rajasthan and other states. Due to the Russia-Ukraine crisis, there is a shortage of gas supply in Europe and international companies are finding it difficult to meet the demand."

"We do not know when the prices will drop again. The Indian supply chain has taken a hit due to the ripple effect of price hike in the international market," he added.

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