The growing disparity between domestic and imported natural gas prices in Assam is threatening the state’s plans to expand its piped natural gas (PNG) and compressed natural gas (CNG) networks. Imported gas currently costs around USD 13 per MMBtu, while domestic gas is priced at approximately USD 7 per MMBtu. This price gap is squeezing commercial and industrial consumers, who are left vulnerable to financial strain due to the lack of protection under the administered pricing mechanism (APM). The APM shields domestic consumers and certain priority sectors from international price swings, but commercial establishments are left exposed.
The current pricing structure risks stifling industrial growth, undermining competitiveness, and making gas distribution financially unsustainable. Small businesses, already struggling with operational challenges, may be forced to switch to cheaper, more polluting fuels. The author of the letter argues that the government must act swiftly to address these issues by rationalizing gas allocation, ensuring transparent pricing, and providing targeted relief to struggling industries.
Assam must also focus on boosting domestic gas production and improving distribution infrastructure to reduce reliance on imported liquefied natural gas. The letter emphasizes that energy security cannot be achieved with prohibitively high prices, and policymakers must balance affordability, industrial viability, and environmental sustainability to avoid a larger economic crisis. Without intervention, Assam’s gas revolution could falter, leaving behind empty promises and a struggling economy.