Year End Review 2025: Ministry of Petroleum & Natural Gas
Table of Contents
Source: PIB
Relevance:
GS Paper III: Energy security, clean energy transition, infrastructure development
Important Key Concepts for Prelims and Mains:
For Prelims:
- Pradhan Mantri Ujjwala Yojana (PMUY), Electric Vehicles (EVs), Ethanol Blending Programme,
Compressed Bio-Gas (CBG), Sustainable Aviation Fuel (SAF), Strategic Petroleum Reserves (SPR)
For Mains:
- Energy Access, Energy Sustainability, Energy Security,
Gas-based Economy, Upstream Sector Reforms, Critical Mineral Dependence
Why in News?
- The Year End Review 2025 released by the Ministry of Petroleum & Natural Gas (MoPNG) outlines the Government of India’s efforts during 2025 to strengthen energy access, affordability, infrastructure, cleaner fuels and national energy security.
- These initiatives assume importance as oil and natural gas remain central to India’s rapidly expanding economy, supporting growth across multiple sectors.
Role and Mandate of the Ministry of Petroleum & Natural Gas
The Ministry of Petroleum & Natural Gas is responsible for the entire hydrocarbon value chain in India, including:
- Exploration and production of crude oil and natural gas
- Refining, distribution and marketing of petroleum products
- Import, export and conservation of oil and gas
Oil and natural gas continue to be critical inputs for India’s rapidly growing economy, supporting industrial growth, transport, agriculture, power generation and household energy needs.
During 2025, the Ministry pursued a comprehensive and integrated approach to:
- Ensure affordable energy access
- Enhance domestic production
- Strengthen fuel and gas infrastructure
- Promote cleaner fuels
- Reinforce national energy security
All initiatives were aligned with the four national energy priorities:
Energy Access, Energy Efficiency, Energy Sustainability and Energy Security.
What are the Key Achievements of the Ministry of Petroleum & Natural Gas in 2025?
Expansion of Clean Cooking Fuel Access (PMUY)
- Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries reached about 10.35 crore as on 1 December 2025, indicating near-saturation of LPG access.
- To address residual demand, the Government approved 25 lakh additional LPG connections during FY 2025–26.
- A major reform was introduced by replacing the earlier multi-point self-declaration system with a single Deprivation Declaration, simplifying eligibility and improving inclusion.
- LPG affordability was supported through a ₹300 subsidy per 14.2 kg cylinder, applicable for up to nine refills per year for PMUY beneficiaries.
- This led to a steady rise in LPG usage:
- Around 3 refills per year in 2019–20
- 4.47 refills in FY 2024–25
- ~4.85 refills per annum (pro-rated) in FY 2025–26
- The trend indicates sustained behavioural adoption of clean cooking fuel.
Transparency and Consumer Safety in LPG Usage
- To improve subsidy targeting, biometric Aadhaar authentication was accelerated:
- Covered 71% of PMUY consumers
- Covered 62% of non-PMUY consumers (as of 1 December 2025)
- A special nationwide drive in November 2025 enabled consumers to complete authentication through simplified mobile-based processes, free of cost.
- Consumer safety was strengthened through a nationwide Basic Safety Check campaign:
- 12.12 crore free safety inspections conducted at customer premises
- 4.65 crore LPG hoses replaced at discounted rates
- These measures significantly improved domestic LPG safety awareness and reduced accident risks.
Strengthening Fuel Retail and Transport Infrastructure
- Petroleum marketing infrastructure was modernised through:
- Over 90,000 retail outlets enabled with digital payments
- Deployment of 2.71 lakh POS terminals
- Door-to-door fuel delivery expanded via commissioning of over 3,200 bowsers, improving access in remote areas.
- Under the Swachh Bharat Mission:
- Toilets were ensured at nearly all retail outlets
- Many outlets provided separate facilities for men and women, improving hygiene and traveller convenience
- Electric mobility infrastructure expanded rapidly:
- 8,932 EV charging stations installed under FAME-II
- 18,500+ additional chargers set up by Oil Marketing Companies from own resources
APNA GHAR Initiative and Integrated Energy Stations
- Under the APNA GHAR initiative, more than 500 wayside amenities were established for truck drivers.
- These facilities contributed to:
- Improved road safety
- Better working conditions for transport workers
- Additional rural employment
- Public Sector Oil Marketing Companies initiated 4,000 integrated Energy Stations during 2024–25 to 2028–29.
- These Energy Stations function as multi-fuel mobility hubs, offering:
- Petrol and diesel
- Biofuels
- CNG and LNG (where feasible)
- Electric vehicle charging
- As on 1 November 2025, 1,064 Energy Stations were operational nationwide.
Expansion of the Gas-Based Economy
- Operational natural gas pipelines expanded from:
- 15,340 km (2014) to 25,429 km (June 2025)
- An additional 10,459 km of pipelines are under execution.
- Completion will enable a fully connected national gas grid, supporting balanced regional development.
- To reduce regional tariff disparities, PNGRB implemented the Unified Pipeline Tariff regime:
- Based on the mission “One Nation, One Grid, One Tariff”
- Effective from 1 April 2023
- Covers about 90% of operational pipelines
- City Gas Distribution (CGD) expanded to 307 geographical areas:
- 1.57 crore PNG domestic connections
- Over 8,400 CNG stations (as of September 2025)
- Revised domestic gas allocation guidelines aligned supply with actual consumption and reduced price volatility.
- To improve subsidy targeting, biometric Aadhaar authentication was accelerated:
Biofuels and Cleaner Energy Transition
- Under the SATAT initiative, over 130 Compressed Bio Gas (CBG) plants were commissioned by November 2025.
- Mandatory CBG blending in CNG and PNG commenced from FY 2025–26, supported by:
- Financial assistance for pipeline connectivity
- Biomass aggregation
- Ethanol blending in petrol reached 19.24% in ESY 2024–25.
- This resulted in:
- ₹1.55 lakh crore foreign exchange savings
- Significant reduction in carbon emissions
- Under Pradhan Mantri JI-VAN Yojana, second-generation ethanol plants became operational at:
- Panipat
- Numaligarh
Sustainable Aviation Fuel (SAF) and Biodiesel
- Government announced indicative SAF blending targets for international flights:
- 1% in 2027
- 2% in 2028
- 5% in 2030
- Indian Oil Corporation Limited (IOCL) became the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat refinery.
- IOCL subsequently signed an MoU with Air India for SAF supply.
- Biodiesel blending expanded through increased procurement and diversification of feedstocks.
Upstream Sector Reforms and Strategic Energy Security
- Major reforms introduced through:
- Oilfields (Regulation and Development) Amendment Act, 2025
- Petroleum and Natural Gas Rules, 2025
- Under the Hydrocarbon Exploration Licensing Policy (HELP):
- 172 blocks awarded
- Area covered: >3.78 lakh sq km
- Committed investment: USD 4.36 billion
- Exploration activity intensified via:
- Seismic surveys
- Drilling programmes
- Mission Anveshan
- Strategic Petroleum Reserves strengthened through:
- Progress under Phase-II facilities
- Renewed international partnerships
- Overseas investments by Indian oil and gas PSUs continued to diversify supply sources and strengthen long-term energy security.
What Steps are Needed to Strengthen India’s Energy Security?
- Boost Domestic Production: Implement upstream reforms, expand Mission Anveshan, deploy AI and Enhanced Oil Recovery in mature fields.
- Diversify Energy Imports: Secure long-term contracts with new suppliers and bypass maritime chokepoints.
- Accelerate Clean Transition: Scale battery storage, green hydrogen, ethanol blending, and CBG mandates.
- Critical Mineral Self-Reliance: Operationalise the National Critical Minerals Mission, build refining capacity, and develop recycling ecosystems.
- Energy Diplomacy: Strengthen global partnerships through ISA, OSOWOG, and nuclear cooperation.
Conclusion
The Year End Review 2025 demonstrates that the Ministry of Petroleum & Natural Gas adopted a holistic, reform-oriented and future-focused approach during the year. By simultaneously expanding energy access, modernising infrastructure, promoting cleaner fuels, reforming the upstream sector and strengthening strategic preparedness, the Ministry significantly enhanced India’s energy affordability, sustainability and security, supporting the country’s transition towards a resilient and inclusive energy future.
UPSC PYQ
Q. Consider the following statements: (2019)
- Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
- One of the tasks of PNGRB is to ensure competitive markets for gas.
- Appeals against the decisions of PNGRB go before the Appellate Tribunal for Electricity.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Answer: B
Explanation
- Statement 1 is incorrect:
The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006. It is not the first independent regulatory body in India. The Telecom Regulatory Authority of India (TRAI), established under the TRAI Act, 1997, was the first independent regulator. Hence, Statement 1 is incorrect. - Statement 2 is correct:
One of the statutory functions of PNGRB is to protect the interests of consumers and entities engaged in petroleum, petroleum products, and natural gas, and to promote competitive markets in these sectors. - Statement 3 is correct:
As per Section 110 of the Electricity Act, 2003, the Appellate Tribunal for Electricity (APTEL) acts as the appellate authority for appeals against decisions of the PNGRB.
CARE MCQ
Q. Consider the following statements regarding Pradhan Mantri Ujjwala Yojana (PMUY):
- PMUY was launched in 2016 to provide LPG connections to rural and deprived households.
- The scheme was launched at Ballia in Uttar Pradesh.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: C
Explanation:
- Statement 1 is correct:
- The Pradhan Mantri Ujjwala Yojana (PMUY) was introduced in May 2016 by the Ministry of Petroleum and Natural Gas (MoPNG) to provide LPG connections to rural and economically deprived households that relied on traditional fuels like firewood, coal, and cow-dung cakes.
- Statement 2 is correct:
- The scheme was launched on 1st May 2016 at Ballia, Uttar Pradesh, by the Prime Minister of India.
- Its objective includes reducing indoor air pollution, improving women’s health, and protecting the environment.
