Domestic gas consumption is expected to grow by 9-11 per cent in the current fiscal after witnessing a slight moderation, due to the Covid-19 pandemic, in 2020-21. Numerous factors like demand revival, post easing of lockdown measures, increasing offtake by City Gas Distribution (CGD) entities, pipeline network expansion, new LNG terminals, and commissioning of new fertiliser plants would be the growth drivers.
The demand for petroleum products is also expected to grow by 8-10 per cent in 2021-22 and the cost economics remain favourable for CNG and piped natural gas (domestic), compared to alternate fuels, despite an increase in gas prices and the fact that competitive intensity is higher in case of industrial fuels.