India Cuts LPG Supply to PNG-Ready Households to Combat Import Shortages
In a decisive move to address a growing liquefied petroleum gas (LPG) crisis, the Indian government has announced it will cease cylinder deliveries to households that have access to piped natural gas (PNG) networks but have not opted for connections. This policy, set to take effect after a three-month grace period, aims to redirect LPG supplies to regions facing acute shortages, exacerbated by disruptions in imports due to the ongoing West Asia conflict.
War-Driven Shortages Prompt Strategic Shift
The decision comes amid severe LPG shortages, as India imports approximately 60% of its LPG requirements, with nearly 90% of these imports sourced from West Asian countries via the Strait of Hormuz. The war in the region has severely impacted supply chains, forcing the government to seek alternative distribution strategies. Officials emphasized that LPG supply will only continue if authorized entities issue a no-objection certificate confirming that providing a PNG connection is technically unfeasible.
PNG as a Viable Alternative with Stable Supplies
While India also imports about half of its liquefied natural gas (LNG) needs—converted into PNG and compressed natural gas (CNG) for domestic, commercial, and industrial use—supplies remain comfortable due to diversified sourcing. This stability allows for a ramp-up in PNG adoption, offering a reliable alternative to LPG. The move is expected to free up LPG from areas with existing pipeline infrastructure, diverting it to underserved regions.
Mandatory Switch for Renters and Homeowners
A senior gas company official clarified that the policy extends to rented properties, where tenants currently using LPG must switch if owners have not taken PNG connections. "Gas is a utility akin to electricity and water. Owners do not have a choice but to secure a PNG connection," the official stated, underscoring the mandatory nature of the shift. Petroleum ministry officials added that city gas distribution companies will soon notify eligible LPG consumers via registered or speed post about the switch to PNG.
Scope and Targets for PNG Expansion
According to ministry estimates, nearly 60 lakh domestic and commercial LPG consumers can transition to PNG, as pipeline networks are available in their neighborhoods. However, several unauthorized colonies, villages, and slums with narrow lanes lack such infrastructure, highlighting implementation challenges. As of December 2025, India had over 1.6 crore domestic, 48,157 commercial, and 21,373 industrial PNG connections. The Petroleum and Natural Gas Regulatory Board has authorized gas distribution companies to lay networks in 307 geographical areas, targeting 12.6 crore PNG connections by 2032.
Recent Adoption Trends and Future Outlook
Sujata Sharma, joint secretary in the petroleum ministry, reported that 2.2 lakh consumers have already switched from LPG to PNG in recent days, indicating a positive response to the initiative. This policy shift not only aims to mitigate immediate shortages but also aligns with long-term goals of enhancing energy security and promoting cleaner fuel usage across the country.
