In June, India’s consumption of natural gas surged by 7%, reaching 5,594 million metric standard cubic metres (MMSCM) as more households adopted the fuel for cooking and demand in urban transport increased. This rise reflects a broader shift towards green fuel across the country. Data from the Ministry of Petroleum and Natural Gas highlight an increase in domestic gas production, which rose by 2.9% to 2,993 MMSCM, helping to meet the elevated demand. Parallelly, imports of natural gas saw a significant jump of 11.3% to bolster supply networks.
Petroleum products including petrol, diesel, and jet fuel also experienced a 2.6% increase in consumption, totaling 20 million metric tonnes (MMT) in June. However, crude oil imports declined by 5.6% year-on-year to 18.5 million metric tonnes. Despite this decline, the import bill rose by 11% to $11.1 billion due to soaring international oil prices, which exceeded $82 per barrel. This price surge prompted the Indian government to raise windfall taxes on domestic crude oil companies such as ONGC and Oil India Ltd.
Gas companies are expanding their networks aggressively to meet the rising demand for green fuel, aligning with the country’s shift towards more sustainable energy sources. The financial implications of these shifts are clear, with higher fuel prices impacting national import expenses and necessitating regulatory tax adjustments.
This combination of increased domestic production and expansion of import capacity highlights the dynamic nature of India’s energy market as it navigates the balance between demand, supply, and economic pressures.
Original Story https://www.newsonair.gov.in/consumption-of-natural-gas-rose-by-7-per-cent-in-june/
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