Ministry Of Petroleum And Natural Gas (2025)

Policy Update
Atharva Salunke

Background:

The Ministry of Petroleum and Natural Gas (MoPNG) is the principal body responsible for exploration and production, refining, distribution, import, and export of petroleum, natural gas, and allied products in India. Since oil and gas are vital components for the growth of the Indian economy and energy security, the Ministry takes center stage in ensuring energy access that is sustainable and efficient. Its initiatives involve enhancement in domestic production through policies on the Hydrocarbon Exploration Licensing Policy, Discovered Small Field Policy, and expansion of the Natural Gas Grid.

It also promotes cleaner energy through the National Policy on Biofuels (2018), Compressed Bio Gas initiatives, and implementation of BS-VI fuel standards. Socially inclusive schemes like Pradhan Mantri Ujjwala Yojana and PAHAL have increased access to clean cooking fuel for millions. The Ministry also undertakes strategic reserves, international cooperation on energy issues, and conservation campaigns aimed at steering the petroleum sector towards global lines of energy efficiency, innovation, and sustainability.

Organizations Under the Ministry of Petroleum and Natural Gas (MoPNG):

Divisions:

Administration Division
Bio Refinery Division
Refinery Division
International Cooperation Division
GP Division (Gas & Projects Division)
Exploration Division
Marketing Division
General Division
Finance Division
E & S Division (Economic & Statistics Division)
Vigilance Division
Corporate Affairs Desk
Parliament Cell
IT Cell
Pay and Accounts Division

Attached Offices:

Directorate General Hydrocarbons (DGH)
Oil Industry Development Board (OIDB)
Oil Industry Safety Directorate (OISD)
Petroleum Planning and Analysis Cell (PPAC)
Centre for High Technology (CHT)

Research institutes:

Rajiv Gandhi Institute of Petroleum Technology (Jais)
Rajiv Gandhi Institute of Petroleum Technology (Noida)
Rajiv Gandhi Institute of Petroleum Technology (Assam)
Rajiv Gandhi Institute of Petroleum Technology (Bangalore)
Indian Institute of Petroleum and Energy (Visakhapatnam)

Public Sector Undertakings:

Oil & Natural Gas Corporation Limited(ONGC)
Indian Oil Corporation Limited (IOCL)
Bharat Petroleum Corporation Limited(BPCL)
Hindustan Petroleum Corporation Limited(HPCL)
Gas Authority of India Limited (GAIL)
Oil India Limited (OIL)
Engineers India Limited (EIL)
Chennai Petroleum Corporation Limited(CPCL)
Numaligarh Refinery Limited (NRL)
Brahmaputra Cracker and Polymer Limited (BCPL)
Balmer Lawrie & Co. Limited
Mangalore Refinery and Petrochemicals Limited (MRPL)
ONGC Videsh Limited (OVL)
Bharat PetroResources Limited (BPRL)
Indian Strategic Petroleum Reserves Limited (ISPRL)

Schemes under the Ministry of Petroleum and Natural Gas (MoPNG):

PAHAL (Pratyaksh Hanstantrit Labh) – direct benefit transfer for LPG subsidy

PAHAL is one of the world’s largest DBT schemes, launched by the Ministry of Petroleum and Natural Gas, with the objective of ensuring transparency and efficiency in the distribution of LPG subsidy. It entails the transfer of the LPG subsidy directly into the bank accounts of the consumers, thereby weeding out duplicate, fake, and ineligible connections.

As many as 30.43 crore LPG consumers are covered under PAHAL as of November 1, 2024. The scheme has been at the forefront of providing reforms in the LPG subsidy mechanism since its inception by bringing in greater accountability and reducing leakages. More than 1.14 crore customers have voluntarily given up their subsidy as part of the ‘GiveItUp’ campaign to enable the benefits to reach the economically weaker sections of society.

Pradhan Mantri Ujjwala Yojana (PMUY)

Launched in 2016, the Pradhan Mantri Ujjwala Yojana has been one of the most transformative social welfare initiatives of the Ministry of Petroleum and Natural Gas, aimed at providing clean cooking fuel to women from economically weaker households. Now, it has grown into a 10.33 crore-strong family, an eloquent symbol of India’s commitment to energy equity and women’s empowerment. More than 222 crore LPG refills have been delivered to PMUY households since its inception, and nearly 13 lakh refills are being taken every day.

To make LPG more affordable, the government is providing a targeted subsidy of ₹ 300 per cylinder to all Ujjwala beneficiaries. The scheme improved the LPG usage pattern: per capita consumption, or PCC, increased from 3.01 cylinders in 2019-20 to 3.95 in 2023-24 and 4.34 cylinders (pro-rata) as of October 2024. PMUY has not only advanced health outcomes by reducing indoor air pollution but also ensured gender inclusion and rural development through access to clean energy.

Ethanol Blended Petrol (EBP) Programme

The objectives of the EBP Programme are to facilitate the use of renewable energy, reduce the import of crude oil, and also help farmers in improving their income. Ethanol supplies have increased from 38 crore litres during 2013-14 to 707.40 crore litres during 2023-24, thus achieving 14.60% average blending. Blending has improved further to 16.23% as of 29 December 2024, for 2024-25.

E20 petrol is available at more than 17,400 retail outlets. During the last ten years, the EBP Programme has resulted in forex savings of ₹1,08,600 crore, a reduction of 557 LMT CO₂, and ₹92,400 crore payment to farmers. During April to November 2024, OMCs procured 36.68 crore litres of biodiesel, compared to 29.25 crore litres during the same period of 2023, registering steady progress towards the clean fuel transition of India.

Hydrocarbon Exploration Licensing Policy (HELP)

Launched in March 2016, aims to unlock India’s vast oil and gas potential through a transparent and investor-friendly framework. Under HELP, the Open Acreage Licensing Programme (OALP) allows companies to select exploration blocks of their choice, marking a shift from the earlier Production Sharing Contract (PSC) to a Revenue Sharing Contract (RSC) regime. So far, 144 blocks covering over 2,42,056 sq. km have been awarded across eight OALP rounds, with a committed investment of USD 3.137 billion.

These efforts have led to 13 hydrocarbon discoveries, including one gas-producing block in Gujarat (0.44 MMSCMD), while others remain under appraisal. In OALP Round IX, around 1,36,596 sq. km across eight sedimentary basins received strong industry participation. Furthermore, an additional 1,91,986.21 sq. km area has been identified for international competitive bidding under OALP Round X, reinforcing India’s goal of enhancing domestic energy production and self-reliance.

Discovered Small Field Policy (DSF) Policy

Launched in 2015, the DSF was aimed at unlocking the potential of small and marginal oil and gas fields left untapped. This policy has been put into place to enhance domestic hydrocarbon production through simplified contractual terms and ease of operations. As of now, three rounds of DSF bidding have been completed, with 85 contracts signed, out of which 55 are currently operational.

Currently, five fields are on stream, with a cumulative production of 520 thousand barrels (Mbbl) of oil and 138 million standard cubic meters (MMSCM) of gas as of March 2024. Significantly, the DSF rounds have drawn 15 new players into India’s exploration and production sector, increasing competition, investment, and technological innovation in the country’s energy domain.

Pradhan Mantri JI-VAN (Jaiv Indhan – Vatavaran Anukool fasal awashesh Nivaran) Yojana

The Pradhan Mantri JI-VAN (Jaiv Indhan – Vatavaran Anukool Fasal Awashesh Nivaran) Yojana, which was initiated in March 2019, is a financial support program for the development of Second Generation (2G) bio-ethanol plants that make use of biomass and renewable feedstocks, with a total budget covering the period 2018-19 to 2023-24 amounting to ₹1,969.50 crore. Thus, the project leads to environmental benefits and generates clean fuel for the rural population, besides making the country energy self-sufficient.

The length of the project was later on in 2024 extended till 2029 with the motivation of drawing in investment and new technology adoption, including bolt-on and brownfield projects. The scheme is predicted to cut down pollution, create job opportunities in the rural areas, and enhance the country’s biofuel ecosystem. For the year 2025-26, an amount of ₹255.29 crore has been allocated as a budgetary provision.

Conclusion:

The Ministry of Petroleum and Natural Gas stands at the frontline of India’s energy policy, guiding the nation’s pursuit of energy security, sustainability, and self-reliance. Its activities regarding exploration, production, refining, and transition to clean fuel ensure energy access at reasonable prices and in a reliable manner for all. By encouraging innovation, efficiency, and responsible management of resources, MoPNG strengthens India’s status as a global energy player. Its policies power not only economic growth but also rural development while helping attain environmental sustainability in keeping with the vision for a cleaner, greener, energy-secure India.

References:

Ministry of Petroleum and Natural Gas, Government of India. (n.d.). About the Ministry. Retrieved November 5, 2025, from https://mopng.gov.in/en/about-us/about-the-ministry
Press Information Bureau, Government of India. (2025, August 5). Government strengthens LPG subsidy transfers through PAHAL and Aadhaar authentication: Petroleum Minister Hardeep S Puri – Over 4 crore duplicate LPG connections deactivated to curb misuse. PIB Delhi. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2152413
Press Information Bureau, Government of India. (2025, January 7). Year End Review 2024 – Ministry of Petroleum and Natural Gas. PIB Delhi. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2090844
Standing Committee on Petroleum & Natural Gas. (2025). Second report: Ministry of Petroleum & Natural Gas-Demands for grants (2025-26). Lok Sabha Secretariat. https://eparlib.sansad.in/bitstream/123456789/2989606/1/18_Petroleum_and_Natural_Gas_2.pdf

About the Contributor:

Atharva Salunke is a Policy Research Associate at NITI TANTRA and a Research Intern at IMPRI. He has recently graduated with a Bachelor’s degree in Political Science from Sir Parashurambhau College, Pune.

Acknowledgement: The author extends his sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.