India’s PNG Rollout Accelerates Amid Supply Concerns

New Delhi, March 31 India added more than 3.1 lakh new piped natural gas (PNG) connections in March, and another 2.7 lakh connections were issued as the government accelerated the expansion of cleaner fuel networks amid supply disruptions following the closure of the Strait of Hormuz.

With the war in West Asia disrupting LPG supplies, the government has been promoting greater adoption of piped natural gas – which is considered more convenient than LPG cylinders for everyday use, as gas is delivered through a pipeline directly to homes without the hassle of booking refills.

The war has effectively closed the Strait of Hormuz – the shipping lane through which India gets most of its LPG. While LPG supplies have been disrupted, half of the country's natural gas requirement is produced locally, and for the rest, there are diversified sources.

"During the month of March, more than 3.1 lakh connections, including domestic, commercial, hostel, mess, canteen, etc., have been converted to natural gas. In addition, more than 2.7 lakh new connections have been issued and are in the process of being converted," an oil ministry statement said, providing an update on the fallout of developments in West Asia.

At the end of February, India had 1.64 crore domestic PNG connections, 48,568 commercial, and 21,512 industrial connections. The 3.1 lakh gasified connections refers to those which were applied in earlier months and were connected and gas supplies started in March. In addition, 2.7 lakh is the number of new PNG connections sought during the month, for which gas supplies are in the process of being started.

The statement said the government is prioritizing the rollout of PNG to households, commercial establishments, and institutions, extending a national expansion drive to end-June and directing city gas distributors to fast-track connections, including for hostels, community kitchens, and educational facilities.

All refineries, it said, are operating at high capacity with adequate inventories, while stocks of petrol and diesel remain sufficient nationwide.

To protect consumers, the government cut excise duties on petrol and diesel by Rs 10 per litre each and imposed export levies on diesel and aviation turbine fuel to boost domestic supply.

Fuel retail outlets are functioning normally, although instances of panic buying have been reported in some areas.

The government said supplies remain adequate and urged citizens to avoid hoarding, while asking states to counter misinformation through regular briefings.

Natural gas supplies have been prioritized for households and transport, with full allocations for PNG and CNG segments, while industrial users are receiving about 80 per cent of average consumption. Additional LNG cargoes are being sourced to stabilize supply.

LPG distribution remains stable with no reported shortages at dealerships, and daily deliveries averaging over 50 lakh cylinders in March, the statement said.

Commercial LPG allocations have been raised in phases to about 70 per cent of pre-crisis levels, with priority for hospitality, food processing, and key industries.

Authorities have intensified enforcement against hoarding and black marketing, conducting thousands of raids and inspections across retail outlets and LPG distributors.

Additional kerosene supplies have been allocated to states as an alternative fuel, while policy measures have been introduced to fast-track pipeline infrastructure and expand city gas networks.

The government said it continues to prioritize household energy needs and critical sectors such as healthcare and education, and urged citizens to conserve fuel and rely on official information.