Oil & Gas

Petroleum Ministry expands clean energy access, infra and reforms

The Ministry of Petroleum & Natural Gas recorded significant progress in 2025 across clean cooking access, fuel retail infrastructure, gas-based economy expansion and upstream sector reforms, reinforcing India’s energy access, affordability and security amid a growing economy. MoPNG has adopted a multi-dimensional approach during the year to balance affordability with sustainability. Oil and gas continued to play a critical role as inputs for economic growth, even as cleaner fuels and alternative energy sources gained momentum.

A major focus area remained universal access to clean cooking fuel. Under the Pradhan Mantri Ujjwala Yojana, the number of beneficiaries rose to about 10.35 crore by December 1, 2025. To clear pending applications and move towards saturation, the government approved 25 lakh additional LPG connections during FY 2025–26. The eligibility process was simplified through the introduction of a single Deprivation Declaration, replacing the earlier multi-point system and making access faster and more inclusive.

Affordability was supported through a targeted subsidy of ₹300 per 14.2 kg LPG cylinder for up to nine refills annually for eligible beneficiaries. This intervention translated into a steady rise in LPG usage, with average per capita consumption increasing from around three refills in 2019–20 to 4.47 refills in FY 2024–25 and a pro-rated 4.85 refills per annum in FY 2025–26, indicating sustained adoption of clean cooking fuel.

To enhance transparency and subsidy targeting, biometric Aadhaar authentication was accelerated. By December 1, 2025, authentication covered 71% of PMUY consumers and 62% of non-PMUY consumers. A special nationwide drive launched in November enabled free and simplified mobile-based authentication for consumers.

Consumer safety was also strengthened during the year through a nationwide Basic Safety Check campaign. More than 12.12 crore free safety inspections were conducted at customer premises, while over 4.65 crore LPG hoses were replaced at discounted rates, significantly improving safety standards and awareness in domestic LPG use.

Parallel efforts were made to strengthen petroleum marketing infrastructure. More than 90,000 retail outlets were enabled with digital payment facilities supported by over 2.71 lakh POS terminals. Door-to-door delivery services expanded with the commissioning of over 3,200 fuel bowsers, improving access in remote areas. Sanitation facilities were ensured at nearly all retail outlets under the Swachh Bharat Mission, with many providing separate facilities for men and women.

Electric mobility infrastructure saw rapid expansion. Under the FAME-II scheme, nearly 9,000 EV charging stations were installed at retail outlets, while oil marketing companies added more than 18,500 charging stations through their own resources. The APNA GHAR initiative also progressed, with over 500 truckers’ wayside amenities established nationwide, contributing to road safety and rural employment.

Public sector oil marketing companies continued work on integrated Energy Stations, envisioned as multi-fuel mobility hubs. As part of the plan to set up 4,000 such stations between 2024–25 and 2028–29, more than 1,000 Energy Stations were operational by November 1, 2025, offering conventional fuels alongside biofuels, CNG, LNG and EV charging.

Significant gains were recorded in expanding the gas-based economy. The operational natural gas pipeline network grew to over 25,400 km by June 2025, compared to 15,340 km in 2014, with more than 10,400 km under execution. Completion of these projects is expected to result in a fully connected national gas grid, improving regional balance and availability.

To address disparities in gas transportation costs, the Petroleum and Natural Gas Regulatory Board’s unified pipeline tariff regime continued to expand, covering about 90% of operational pipelines. City Gas Distribution also widened its reach, with coverage extending to 307 geographical areas. By September 2025, PNG domestic connections reached around 1.57 crore and the number of CNG stations crossed 8,400.

The SATAT initiative advanced with more than 130 compressed biogas plants commissioned by November 2025. Mandatory blending obligations for CBG in CNG and PNG segments commenced from FY 2025–26, supported by financial assistance for pipeline connectivity and biomass aggregation.

Biofuels marked a milestone year, with ethanol blending in petrol averaging 19.24% in ESY 2024–25. This resulted in cumulative foreign exchange savings of over ₹1.55 lakh crore along with significant carbon emission reductions. Advanced biofuels also gained traction under the Pradhan Mantri JI-VAN Yojana, with second-generation ethanol plants at Panipat and Numaligarh becoming operational.

Sustainable Aviation Fuel initiatives moved forward with indicative blending targets set for international flights from 2027 onwards. During the year, Indian Oil Corporation Limited became the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat refinery, followed by a supply agreement with Air India. Biodiesel blending expanded as well, supported by higher procurement volumes and diversified feedstocks.

The upstream sector underwent transformational reforms with the enactment of the Oilfields (Regulation and Development) Amendment Act, 2025 and the notification of new Petroleum and Natural Gas Rules. Under the Hydrocarbon Exploration Licensing Policy, 172 blocks covering more than 3.78 lakh square kilometres were awarded, attracting committed investments of about $4.36 billion. Exploration activity intensified through seismic surveys, drilling programmes and initiatives such as Mission Anveshan.

Strategic petroleum reserves were strengthened through progress on Phase-II facilities and renewed international partnerships, enhancing preparedness against supply disruptions. Overseas investments by Indian oil and gas public sector undertakings continued to diversify supply sources and reinforce energy security.

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