The Ministry of Petroleum & Natural Gas is responsible for exploration and production of oil and natural gas, refining, distribution and marketing of petroleum products, as well as their import, export and conservation. Oil and gas continue to be critical inputs for India’s rapidly growing economy. During the year 2025, the Ministry pursued a comprehensive and multi-dimensional approach to ensure affordable energy access, enhance domestic production, strengthen infrastructure, promote cleaner fuels and reinforce national energy security. These initiatives are aligned with the overarching national priorities of Energy Access, Energy Efficiency, Energy Sustainability and Energy Security.

Ensuring universal access to clean cooking fuel remained a flagship priority. Under the Pradhan Mantri Ujjwala Yojana, the number of beneficiaries reached about 10.35 crore as on 1 December 2025. To clear pending applications and achieve saturation of LPG access, the Government approved the release of 25 lakh additional LPG connections during FY 2025-26. The eligibility process was simplified through the introduction of a single Deprivation Declaration, replacing the earlier multi-point self-declaration system, thereby making access faster and more inclusive.

Affordability of LPG was supported through a targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year for PMUY beneficiaries. This intervention resulted in a steady rise in LPG consumption. Average per capita consumption increased from about three refills in 2019-20 to 4.47 refills in FY 2024-25 and further to a pro-rated level of about 4.85 refills per annum during FY 2025-26, indicating sustained adoption of clean cooking fuel.

To improve subsidy targeting and transparency, biometric Aadhaar authentication was accelerated. As on 1 December 2025, biometric authentication covered 71 percent of PMUY consumers and 62 percent of non-PMUY consumers. A special nationwide drive was launched in November 2025 to enable consumers to complete authentication through simplified mobile-based processes, free of cost.

Consumer safety was strengthened through the nationwide Basic Safety Check campaign. More than 12.12 crore free safety inspections were conducted at customer premises, and over 4.65 crore LPG hoses were replaced at discounted rates, significantly enhancing awareness and safety standards in domestic LPG usage.

The Ministry also focused on strengthening petroleum marketing infrastructure. Over 90,000 retail outlets were enabled with digital payment facilities, supported by more than 2.71 lakh POS terminals. Door-to-door delivery services were expanded through the commissioning of over 3,200 bowsers, improving accessibility in remote areas. Under Swachh Bharat Mission, toilet facilities were ensured at nearly all retail outlets, with a large number providing separate facilities for men and women.

Electric mobility infrastructure expanded rapidly during the year. Under the FAME-II scheme, 8,932 EV charging stations were installed at retail outlets, while Oil Marketing Companies additionally set up over 18,500 charging stations from their own resources. The APNA GHAR initiative progressed with more than 500 truckers’ wayside amenities established, improving road safety and supporting rural employment.

Public Sector Oil Marketing Companies are setting up 4,000 Energy Stations during 2024-25 to 2028-29 along major corridors and other feasible locations. These stations are being developed as integrated mobility hubs offering conventional fuels such as petrol and diesel along with alternative fuels including biofuels, CNG, LNG (where feasible) and electric vehicle charging facilities. As on 1 November 2025, 1,064 Energy Stations have been set up across the country.

Significant progress was made in expanding the gas-based economy. The length of operational natural gas pipelines in the country has increased from 15,340 km in 2014 to 25,429 km as on June 2025, with another 10,459 km under execution. Completion of these pipelines authorized by PNGRB and the Government of India will result in a fully connected national gas grid, ensuring wider availability of natural gas across regions and supporting balanced economic and social development.

To address regional disparities in gas transportation costs, the Petroleum and Natural Gas Regulatory Board has implemented a Unified Pipeline Tariff regime under the mission of “One Nation, One Grid, One Tariff”. Introduced from 1 April 2023, the system standardizes transportation charges across the national gas grid, replacing the earlier distance-based tariff structure. At present, about 90 percent of operational pipelines are covered under the unified tariff regime, improving affordability and competitiveness of natural gas.

City Gas Distribution coverage expanded to 307 geographical areas. As on September 2025, PNG domestic connections reached about 1.57 crore and CNG stations increased to over 8,400. Revised domestic gas allocation guidelines improved alignment with actual consumption patterns and reduced exposure of consumers to price volatility.

Under the SATAT initiative, as on 1^st November 2025, over 130 Compressed Bio Gas plants have been commissioned, with several more under construction. Mandatory blending obligations for CBG in CNG and PNG segments commenced from FY 2025-26, supported by financial assistance for pipeline connectivity and biomass aggregation.

Biofuels witnessed major gains during the year. Ethanol blending in petrol reached an average of 19.24 percent in ESY 2024-25, with cumulative foreign exchange savings exceeding ₹1.55 lakh crore and substantial carbon emission reductions. Advanced biofuels were promoted under the Pradhan Mantri JI-VAN Yojana, with operational second-generation ethanol plants at Panipat and Numaligarh marking key milestones.

Sustainable Aviation Fuel initiatives advanced during the year with the Government setting indicative blending targets of 1%, 2% and 5% SAF in Aviation Turbine Fuel for international flights from 2027, 2028 and 2030, respectively. In line with this roadmap, Indian Oil Corporation Limited became the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery, followed by the signing of an MoU between IOCL and Air India for SAF supply. Biodiesel blending also expanded during the year, supported by increased procurement volumes and diversification of feedstocks, strengthening the transition towards cleaner transport fuels.

The upstream sector underwent significant reforms with the enactment of the Oilfields (Regulation and Development) Amendment Act, 2025 and notification of the Petroleum and Natural Gas Rules, 2025. Under the Hydrocarbon Exploration Licensing Policy, 172 blocks covering more than 3.78 lakh sq km were awarded, attracting committed investments of about USD 4.36 billion. Exploration activity intensified through seismic surveys, drilling programmes and government-funded initiatives such as Mission Anveshan.

Strategic petroleum reserves were strengthened through renewed international partnerships and progress under Phase-II facilities, enhancing preparedness against supply disruptions. Overseas investments by Indian oil and gas PSUs continued to support energy security through diversification of supply sources.

Through sustained policy reforms, infrastructure expansion and clean energy initiatives, the Ministry of Petroleum & Natural Gas made significant progress in strengthening energy access, affordability, sustainability and security during 2025, supporting India’s journey towards a resilient and inclusive energy future.

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