LPG Supply to Halt for Households Not Opting for PNG
New Delhi, March 25 – The government has mandated that the supply of cooking gas, LPG, to households will be discontinued if consumers fail to switch to piped natural gas where such connectivity is available, under a new order aimed at accelerating gas network expansion and reducing reliance on a single fuel.The move comes as India grapples with an LPG shortage due to global supply disruptions, including damage to liquefaction facilities in the Gulf and the continued blockage of the Strait of Hormuz. The government is actively encouraging households and commercial users to transition to piped natural gas (PNG), a domestically produced and diversified alternative.
PNG offers continuous supply to kitchen burners through pipelines, eliminating the need to book refills. 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, to expedite pipeline infrastructure development, streamline approvals, and promote the shift from LPG to PNG, bolstering energy security.
Key Provisions of the New Order
The order stipulates that LPG supply “shall cease after three months” if a household does not opt for PNG despite availability. However, an exception is provided for households where piped connection is “technically infeasible,” subject to a no-objection certificate (NOC) from the relevant authority.
To facilitate rapid rollout, public authorities are required to grant right of way or permissions within three working days for housing areas, with last-mile PNG connectivity to be provided within 48 hours. Applications for pipeline connectivity in these areas cannot be rejected. Designated officers will have powers akin to a civil court to resolve disputes over land access and grant right of way as needed.
Authorized entities must begin laying pipelines within four months of approval, facing penalties including potential loss of exclusivity if they fail to do so. The Petroleum and Natural Gas Regulatory Board (PNGRB) has been designated as the nodal agency to monitor implementation, tracking approvals, rejections, and compliance.
Financial Implications & Timeline
The order outlines the consequences for households not applying for and obtaining PNG connections. Specifically, “The LPG supply to such an address shall cease after three months from the date of the communication.”
An exception exists where an authorized entity issues a no-objection certificate (NOC) due to technical infeasibility. The entity must maintain records of the reasons for this infeasibility and withdraw the NOC once operationalized PNG connectivity is available.
Oil Secretary Neeraj Mittal highlighted the initiative as an opportunity to address a crisis through ease of doing business reforms. The order, issued under the Essential Commodities Act, seeks to fast-track pipeline infrastructure by easing approvals and standardizing charges.
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