Govt bars piped cooking gas users from holding LPG connections, PNG rollout to be fast-tracked

New Delhi: The government has barred households with piped cooking gas (called PNG) connections from retaining or obtaining subsidised domestic LPG connections, even as the sector regulator pushed city gas distributors to accelerate PNG rollout to ease pressure on cooking gas supplies amid global energy supply disruptions.

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 surrender their domestic LPG connections.

The amended order also prohibits government oil companies and their distributors from providing domestic LPG connections or refilling cylinders for consumers who already have a PNG 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.

Those having PNG connections have also been barred from obtaining a domestic LPG connection.

For government oil companies, the order prohibited them from "providing a domestic LPG connection, and/or supplying domestic LPG cylinder refills to a consumer who already owns a PNG connection".

The move is aimed at prioritising LPG supplies for households that do not have access to piped gas.

India imports about 88 per cent of its crude oil, 50 per cent of its natural gas and 60 per cent of its LPG needs. Before the US-Israel strikes on Iran on February 28 and Tehran's retaliation, more than half of India's crude imports, about 30 per cent of gas and 85-90 per cent of LPG imports came from West Asian countries, such as Saudi Arabia and the UAE.

The conflict has led to a blockade of the Strait of Hormuz, the main transit route for Gulf energy supplies. While India has partly offset crude supply disruptions by sourcing oil from countries, including Russia, gas supplies have been curtailed to industrial users 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 asked city gas distribution (CGD) companies to expedite conversion of households to domestic PNG (DPNG) and prioritise consumers in areas where pipeline infrastructure has already been laid.

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

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

As of January 31, 2026, CGD entities have reported about 1.65 crore PNG connections, of which 1.03 crore consumers are actively using the fuel.

The regulator said CGD companies should prioritise providing PNG connections to consumers who have registered for the service or whose residential areas already have pipeline infrastructure, as this would help reduce pressure on LPG supply chains and support diversification of cooking fuel.

Companies have also been asked to accelerate the rollout of PNG infrastructure, deploy additional manpower and equipment, and shorten the time between application and commencement of gas supply to households.

PNGRB said closer coordination with state governments, municipal bodies and local authorities would be critical to secure permissions, speed up approvals and ensure faster last-mile connectivity for PNG networks.

The regulator added that expanding PNG coverage would support India's energy transition by increasing access to cleaner fuels and mitigating supply disruptions caused by global geopolitical developments.