India’s city gas demand is expected to drop by around 25-30 per cent in the coming months as the Covid-19 pandemic continues to spread across various cities and states. The states with the highest penetration of city gas in the country are Gujarat, Maharashtra, Uttar Pradesh and New Delhi. These states also happen to be some of the worst hit regions by the pandemic.
The overall impact on India’s natural gas demand is not expected to be as severe as 2020 when the nationwide lockdown had caused a nearly 40 per cent drop in gas consumption, however, slowed down industrial activity, reduced transportation and passenger mobility and migrant labours leaving cities is expected to have a significant impact on the city gas distribution sector.