India’s natural gas consumption is anticipated to increase by 3-4% year-on-year in FY27, recovering from a temporary dip in FY26 due to reduced demand from the fertilizer, power, and refinery sectors, according to ICRA’s report.
This anticipated growth is driven by a rebound in industrial offtake and expansion of the City Gas Distribution (CGD) network, positioning natural gas as a key component in India’s energy transition.
The report indicates that crude oil prices are expected to stabilize between $60–$70 per barrel in FY27 amid muted global demand which will support domestic crude profitability and capital expenditure. Marketing margins for retail auto fuels are predicted to remain strong, thanks to stable crude prices.
Furthermore, global LNG prices are projected to moderate due to expected warmer winters and healthy inventory levels, alongside new LNG capacity additions from 2027. Domestic gas prices are also likely to ease as crude prices decline.
Investment in CGD infrastructure, gas pipelines, and petrochemical capacities will keep the capital expenditure high over the next three years, leading to an expected rise in industry debt to approximately Rs. 300 billion by March 31, 2026, though debt metrics are expected to stay healthy.
Source – sarkaritel.com
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