The government has barred households with piped natural gas (PNG) connections from retaining or obtaining subsidised domestic LPG cylinders, as authorities push for faster expansion of piped cooking gas to ease pressure on LPG supplies amid global energy 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 order states that no person with a piped natural gas connection can retain a domestic LPG connection or obtain refills from government oil companies or their distributors. Consumers who already have both will be required to immediately surrender their LPG connection.
Government oil companies have also been prohibited from issuing new LPG connections or supplying refills to consumers who already have 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 around 60 per cent of its LPG requirements. Before the recent escalation in West Asia, more than half of India's crude imports, around 30 per cent of natural gas and 85–90 per cent of LPG imports came from countries such as Saudi Arabia and the UAE.
However, tensions following the US‑Israel strikes on Iran (2026) and Tehran's retaliation have disrupted energy supply routes, including a blockade of the Strait of Hormuz, a key transit corridor 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, especially in areas where pipeline infrastructure already exists.
India's total natural gas consumption currently stands at about 189 million metric standard cubic metres per day (mmscmd), of which roughly 97.5 mmscmd is produced domestically.
Of the 13.94 mmscmd of administered price mechanism (APM) gas allocated to the city gas distribution sector, around 3.63 mmscmd is used in domestic PNG, while the rest is consumed in the compressed natural gas (CNG) segment for vehicles.
As of January 31, 2026, city gas companies reported around 1.65 crore PNG connections, though only about 1.03 crore consumers are actively using the fuel.
The regulator has asked companies to prioritise households that have already registered for PNG connections or live in areas where pipelines have been laid, while also accelerating infrastructure rollout and shortening the time between application and gas supply.
Closer coordination with state governments and local authorities has also been recommended to speed up approvals and last-mile connectivity for PNG networks.
Meanwhile, the government said India remains self-sufficient in petrol and diesel production, with all refineries operating at high capacity and maintaining adequate crude inventories.
According to the Ministry of Petroleum and Natural Gas, no fuel shortages have been reported by oil marketing companies — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — and citizens have been urged not to resort to panic buying.
Consumers have been advised to book LPG refills through digital platforms such as IVRS, SMS, WhatsApp, and the mobile apps of oil marketing companies.
The ministry said LPG bookings declined from about 88.8 lakh on Friday to around 77 lakh on Saturday, while online bookings increased from 84 per cent to about 87 per cent.
To ensure equitable distribution, booking intervals for LPG refills have been rationalised to 25 days in urban areas and up to 45 days in rural regions.
Commercial LPG users in urban areas have also been encouraged to switch to PNG connections, while alternative fuels such as kerosene and coal have been activated for certain sectors, including hospitality and restaurants.
An additional 48,000 kilolitres of kerosene has been allocated to states and Union Territories to support alternative fuel needs as authorities continue to monitor LPG supplies amid the ongoing geopolitical situation.
(With inputs from IANS)
