In a major policy shift, the Ministry of Petroleum and Natural Gas has directed that the supply of cooking gas LPG cylinders will be discontinued in areas where piped natural gas (PNG) connectivity is already available, unless households transition within a stipulated timeframe. The move is part of a broader effort to diversify India’s energy mix, strengthen supply resilience, and reduce dependency on a single fuel source.
The directive comes against the backdrop of global supply disruptions triggered by tensions in West Asia, including the continued closure of the Strait of Hormuz, a critical corridor for global energy shipments. These disruptions have affected LPG availability, prompting the government to accelerate the shift toward pipeline-based fuel systems.
Under the Natural Gas and Petroleum Products Distribution Order, 2026, issued on March 24, households in PNG-enabled areas will see their LPG supply discontinued if they do not switch to piped gas within three months of notification. Exceptions will be granted only in cases where PNG connectivity is deemed technically unfeasible, supported by a formal no-objection certificate.
The order outlines a structured roadmap to expand the country’s pipeline infrastructure while ensuring faster and more efficient connectivity for consumers.
Officials say the policy aims to reallocate LPG cylinders from urban, pipeline-connected areas to regions where PNG infrastructure is not yet available. This redistribution is expected to improve access in rural and remote areas, while reducing pressure on constrained LPG supplies.
Oil Secretary Neeraj Mittal described the move as “a crisis turned into an opportunity,” emphasizing that the reform would enhance energy security and improve ease of doing business in the sector.
Issued under the Essential Commodities Act, the directive mandates strict timelines for approvals related to pipeline installation. Authorities must grant right-of-way permissions within fixed deadlines, failing which approvals will be automatically deemed granted. Additionally, no extra charges beyond prescribed limits can be imposed.
For residential users, access permissions must be provided within three working days, while last-mile PNG connections are required to be completed within 48 hours of approval. Notably, applications for PNG connectivity cannot be rejected.
To address disputes, designated officers have been granted quasi-judicial powers, particularly in matters related to land access. Companies authorized to lay pipelines must commence work within four months, or risk penalties, including the loss of exclusivity rights.
The Petroleum and Natural Gas Regulatory Board (PNGRB) will serve as the nodal agency overseeing implementation. It will monitor approvals, track progress, and ensure compliance across states and urban clusters.
In cases where housing societies or residential complexes deny access for PNG installation, authorities will issue notices. If non-compliance continues, LPG supply to such households will be discontinued after three months.
However, the government has clarified that LPG supply will continue in areas where PNG is not technically viable. Once feasibility improves, households will be required to transition.
The new directive signals a significant structural shift in India’s domestic fuel ecosystem. By prioritizing PNG over LPG in connected areas, the government aims to build a more resilient, efficient, and diversified energy network—one that can better withstand global supply shocks while ensuring uninterrupted access for consumers across the country.
Leave Your Comment