UP braces for CNG shortage, price rise in wake of Russia-Ukraine conflict

Gas Authority of India Ltd has already cut down 20% of CNG supply to 34 CNG pumps in Lucknow, 30 pumps in Agra, four in Ayodhya and three in Unnao
An attendant fills CNG gas in an autorickshaw at a pump station. (File Photo)
An attendant fills CNG gas in an autorickshaw at a pump station. (File Photo)
Published on Mar 07, 2022 09:08 PM IST
Copy Link

LUCKNOW Uttar Pradesh is bracing for a shortage of CNG as the Russia-Ukraine war has started making an impact on natural gas supplies to the local market, which may also lead to a hike in prices of natural gas and crude oil, said officials.

The Gas Authority of India Ltd (GAIL) has already cut down 20% of CNG supply to 34 CNG pumps in Lucknow, 30 pumps in Agra, four in Ayodhya and three in Unnao. Filling stations in these cities are maintained by Green Gas Limited (GGL), while supply in Kanpur is maintained by Central UP Gas Limited (CUGL). GAIL officials didn’t rule out a rise in prices of CNG and crude oil.

“The Russia–Ukraine conflict can hit global CNG and other gas supply chains that are already stressed due to the pandemic. Everyone knows these countries are major players in the global market,” said JP Singh, MD, Green Gas Limited.

“If the war continues for a longer time, there is a possibility of more cuts in CNG supply. As a result, there is a possibility of some pumps getting shut down,” said GAIL.

Russia controls around 12% of the global crude oil production and 17% of natural gas production. If the war doesn’t stop soon, the gas shortage will get worse, impacting almost all industries/vehicles that are run on CNG and fertiliser companies fuelled by natural gas, said officials.

At present, Lucknow gets a daily CNG supply of 1.40-1.45 lakh kg per day while in Agra it is 1.10-1.15 lakh kg. But, after the 20% cut, the supply has come down to 1.25-1.30 lakh kg in Lucknow and 85,000-95000 kg in Agra. The demand for CNG is on the rise as employees are returning to office due to the dip in Covid cases, said Surya Prakash Gupta, chief marketing manager, GGL.

When approached for a comment, chief marketing manager of GAIL Manish Saxena said, “It’s an internal matter which can’t be revealed in public.”

However. he agreed that GAIL is facing pressure from companies for not cutting down supplies. He didn’t rule out rise in prices of CNG and PNG in the days to come as prices of gas had skyrocketed after the war.

“Global supply chains have been badly hit,” he admitted.

GGL officials said they suggested cutting the CNG quota of supply to fertilizer companies and industries instead of reducing supply to CNG pumps.

Lucknow has around 1.25 lakh CNG-run vehicles, Agra 1.10 lakh such vehicles and the number of CNG vehicles is increasing each day due to emphasis on eco-friendly transport system.

12 CNG stations shut in Kanpur

As many as 12 CNG stations have been shut in Kanpur due to shortage of gas supply to the city through pipeline from Gujarat. The rest 22 stations are just about managing supply for as long as they can in the current situation.

Officials of the Central UP Gas limited (CUGL) cited the Russia-Ukraine war as the reason for the shortage. As of now, the supply of piped natural gas (PNG) is unaffected in Kanpur, but there are apprehensions of a crisis, if the war continues.

Kanpur has 34 CNG stations supplying 1.25 lakh kg of gas every day to 73,000 CNG vehicles and factories. Officials said there is a spike in oil and gas prices due to the war. As a result, gas supply to CUGL has been cut down by 25%, which could further go up.

CUGL director Hirdesh Kumar said: “There has been a cutdown in the supply because of this war. We are closely monitoring the situation. If one area has three stations, supply should continue from at least one. PNG consumers will not face any problem.”


    Anupam Srivastava is a Special Correspondent with Hindustan Times, Lucknow. Has produced exclusive stories in medical, civil aviation, civic, political and other issues for over 20 years.

Close Story

Less time to read?

Try Quickreads

  • Panipat additional superintendent of police (ASP) Vijay Singh said the arrest of Ashu (accused) helped them in solving three blind murder cases reported from three different locations.(Image for representational purpose)

    Panipat man kills three within 8 hours; arrested

    The accused, Ashu, a resident of Panipat’s Nara village, killed the victims, reportedly his friends, between 8pm and 4am and travelled around 60km from the first crime scene in Matlauda of Panipat to Titawi in Uttar Pradesh’s Shamli. The victims are Sonu, 26, who was working with a private contractor in a cement factory, and his two friends -- Monu, 25, of Nara village and Rakesh, 27, of Bhalsi village.

  • The Delhi government has introduced several curriculum over the past few years.

    Delhi: Tools to help schools assess mindset curriculum impact

    The Delhi government introduced the Happiness curriculum in 2018, Entrepreneurship mindset curriculum in 2019 and the Deshbhakti curriculum last year with the aim of inculcating problem-solving approaches among students and making them more self-aware, self-confident and socially responsible.

  • Delhi LG Vinai Kumar Saxena.

    Delhi LG inspects drainage at flooding hot spots

    While the LG appreciated the work done at Indraprastha and Pul Prahladpur, he was displeased at the drainage system at Minto Bridge, flagging “technical flaws” in the drainage system and warned that engineers concerned “will be held responsible and strict action will be taken in the event of waterlogging at the site.”

  • Eknath Shinde and rebel Shiv Sena MLAs leave from the airport after arriving from Goa, in Mumbai, India, on Saturday (Vijay Bate)

    Rebel Shiv Sena MLAs return to Mumbai after 11 days, show of strength with BJP

    BJP leader Sudhir Mungantiwar said the MLAs were informed about the election process for upcoming election for Speaker’s post. “They were told that the election will be held through a voice vote or they may have to stand up to vote for their candidate if asked,” said Mungantiwar.

  • Clouds over the Qutub Minar in Delhi on Saturday. (Amal KS/HT Photo)

    Dry day pushes Delhi’s temperature up; IMD forecasts light rain for today

    The weather department classifies rainfall between ‘trace’ and 2.4 mm as ‘very light rainfall’, as ‘light rainfall’ when it is between 2.5 mm and 15.5 mm, as ‘moderate’ rainfall when it is between 15.6 mm and 64.4 mm and as ‘heavy’ when it is over 64.5 mm in a single day.

Story Saved
Saved Articles
My Reads
Sign out
New Delhi 0C
Sunday, July 03, 2022