Govt to end LPG supply to households refusing PNG switch

In a push to expand the piped natural gas (PNG) network, the government has directed consumers to switch to PNG where connections are available, warning that failure to do so could lead to discontinuation of cooking gas supply. PNG is continuously supplied to kitchen burners through pipelines, eliminating the need to book refills.

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The order issued on March 24 states that LPG supply "shall cease after three months" if a household does not opt for PNG despite availability. The mandate, aimed at reducing reliance on a single fuel, comes as the country is grappling with an LPG shortage due to the Iran war.

Boost energy security

The government is urging households and commercial users to switch to piped natural gas, a more convenient alternative that is both domestically produced and sourced through diversified supply.

The Ministry of Petroleum and Natural Gas has issued the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, seeking to fast-track pipeline infrastructure, simplify approvals, and drive a transition from LPG to PNG to bolster energy security.

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The provision, however, allows continuation where it is "technically infeasible" to provide a piped connection, subject to a no-objection certificate.

The move is aimed at freeing up LPG supplies from areas with pipeline connectivity and diverting them to regions lacking such infrastructure, while promoting "fuel diversification" amid global supply disruptions, including damage to liquefaction facilities in the Gulf and the continued blockage of the Strait of Hormuz.

Fast-tracking PNG infrastructure

Commenting on the order, Oil Secretary Neeraj Mittal in the post on X said, "a crisis (has been) turned into an opportunity" through the ease of doing business reforms.

The order, issued under the Essential Commodities Act, seeks to fast-track pipeline infrastructure by easing approvals, standardising charges and ensuring time-bound permissions.

To facilitate rapid rollout, public authorities must grant right of way or permissions within prescribed timelines, failing which approvals will be deemed granted. The order also bars authorities from imposing charges beyond those specified.

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In housing areas, entities controlling access must grant permissions within three working days, and last-mile PNG connectivity is to be provided within 48 hours. Applications for pipeline connectivity in such areas cannot be rejected.

Roll out timeline

The order further provides for intervention by designated officers with powers akin to a civil court to resolve disputes over land access and grant right of way where necessary.

Authorised entities must begin laying pipelines within four months of approval or face penalties, including possible loss of exclusivity.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has been designated as the nodal agency to monitor implementation, including tracking approvals, rejections and compliance.

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In case the right of way or right of use permission to lay pipeline to residences for supply of PNG is not granted by the entities that control access to the housing complex, a notice will be issued and three months thereafter oil marketing companies will stop supply of LPG.

Supply cessation warning

Listing out "consequences of households not applying for and obtaining PNG connection when notified by authorised entity" that has laid a pipeline to supply such fuel, it said, "The LPG supply to such an address shall cease after three months from the date of the communication."

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"The supply of LPG to a household shall not cease, if the authorised entity issues a no-objection certificate (NOC) on the ground that it is technically infeasible to provide a piped natural gas connection or gas supply to such household," it said.

The authorised entity shall maintain records of the reasons for such technical infeasibility and withdraw the NOC as and when it can provide and operationalise the piped gas connectivity to such households.