Govt Bars PNG Users From Holding LPG Connections, Pushes Faster Gas Network Rollout

New Delhi, Mar 15: The government has barred households with piped natural gas (PNG) connections from retaining or obtaining subsidised domestic LPG connections, directing such consumers to immediately surrender their LPG supply to prioritise cooking gas for families without pipeline access.

In a notification issued on March 14, the Ministry of Petroleum and Natural Gas amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, under the Essential Commodities Act, making it mandatory for consumers with PNG connections to give up their domestic LPG connections.

The amended order also prohibits government oil companies and their distributors from issuing new domestic LPG connections or refilling cylinders for consumers who already have a piped natural gas supply.

“No person having a piped natural gas (PNG) connection and also having a domestic LPG connection shall retain a domestic LPG connection, or take refills of domestic LPG cylinders from any Government oil company, or through their distributors. Such persons will be required to immediately surrender their domestic LPG connection,” the order said.

Consumers with PNG supply have also been barred from applying for new LPG connections, while government oil companies have been instructed not to provide domestic LPG cylinders or refills to such households.

The move aims to prioritise LPG supplies for households that do not have access to piped gas, particularly as global energy disruptions have strained supply chains.

India imports nearly 88 per cent of its crude oil, 50 per cent of its natural gas and about 60 per cent of its LPG requirements. Before the recent escalation in West Asia following US-Israel strikes on Iran on February 28 and Tehran’s retaliation, more than half of India’s crude imports, around 30 per cent of gas and 85–90 per cent of LPG imports came from West Asian countries including Saudi Arabia and the UAE.

The conflict has led to a blockade of the Strait of Hormuz, a crucial route for Gulf energy shipments. While India has partly offset crude supply disruptions by sourcing oil from countries including Russia, gas supplies to industrial users have been curtailed and LPG availability to commercial establishments such as hotels and restaurants has been reduced.

In a related advisory, the Petroleum and Natural Gas Regulatory Board (PNGRB) has directed city gas distribution companies to accelerate the rollout of domestic PNG connections and prioritise consumers in areas where pipeline infrastructure is already in place.

The regulator said India’s total natural gas consumption is about 189 million metric standard cubic metres per day (mmscmd), of which around 97.5 mmscmd is produced domestically.

Out of the average 13.94 mmscmd of administered price mechanism (APM) gas allocated to the city gas distribution sector, about 3.63 mmscmd is used for domestic PNG connections while the rest is consumed in the compressed natural gas (CNG) segment for vehicles.

As of January 31, 2026, city gas distributors have reported around 1.65 crore PNG connections across the country, of which about 1.03 crore consumers are actively using the fuel.

PNGRB said companies should prioritise providing PNG connections to consumers who have already registered or whose residential areas have pipeline infrastructure, as this would reduce pressure on LPG supplies and diversify cooking fuel sources.

The regulator has also asked companies to speed up PNG infrastructure development, deploy additional manpower and equipment, and reduce the time between consumer application and commencement of gas supply.

It emphasised that closer coordination with state governments, municipal bodies and local authorities would be essential to secure approvals and ensure faster last-mile connectivity for PNG networks.

PNGRB added that expanding PNG coverage would support India’s transition to cleaner fuels while helping mitigate supply disruptions caused by global geopolitical developments. (Agencies)