New Delhi, April 17 (NationPress) A prominent government panel, in conjunction with the Petroleum and Natural Gas Regulatory Board (PNGRB), has put forth a proposal to abolish the excise duty on Compressed Natural Gas (CNG). This move aims to reduce costs and encourage the adoption of this eco-friendly fuel, aligning with India's goal of attaining a 15 percent share of natural gas in its fuel mix by 2030.

The primary suggestions include eliminating the current 14 percent excise duty, thereby rendering CNG a more appealing fuel alternative. Additionally, the panel has recommended reducing the GST on CNG vehicles to 5 percent to equalize their pricing with electric vehicles, thereby fostering greater acceptance.

These recommendations emphasize the importance of maintaining a competitive price gap between CNG and petrol, motivating consumers to switch to this sustainable fuel option.

The anticipated tax relief on natural gas could potentially benefit around 1.9 crore households and 38.41 lakh prospective users.

Currently, high taxation—such as the 14 percent excise duty and state VAT—has rendered CNG less competitive in various regions, particularly in southern states.

In response to the disruptions in supply chains due to the West Asia crisis, the government is also promoting the transition from LPG to piped natural gas (PNG) in households. The expansion of PNG has accelerated, with approximately 4.58 lakh new PNG connections established and about 5.1 lakh additional customers signing up for new connections since March of this year.

As of April 15, around 35,000 PNG users have given up their LPG connections via the MYPNGD.in website. States have been encouraged to facilitate new PNG connections for both residential and commercial users.

The government is striving to promote the adoption of natural gas through a collaborative effort between the PNGRB and state authorities, as part of India's shift toward a cleaner and more sustainable energy landscape. A key aspect of this strategy involves the expansion of the City Gas Distribution (CGD) network via Piped Natural Gas (PNG) connections.

Led by entities sanctioned by the PNGRB, the CGD network currently encompasses 307 geographical areas (GAs), covering nearly the entire geographical expanse of the country, with the exception of islands, impacting around 784 districts across 34 states and Union Territories. The government has implemented a variety of policy and regulatory initiatives to stimulate growth in this sector.

These initiatives range from allocating administered price domestic gas and simplifying supply mechanisms to mandating PNG provisions in government and defense residential complexes, granting Public Utility status to CGD projects, and instructing the CPWD and NBCC to incorporate PNG provisions in all government residential buildings.