Government Mandates PNG Shift: LPG Supply to be Discontinued in Areas with Pipeline Connectivity
NEW DELHI March 25, 2026:- The Ministry of Petroleum and Natural Gas has issued a landmark directive mandating households to transition from Liquefied Petroleum Gas (LPG) to Piped Natural Gas (PNG) wherever the infrastructure is available.
Under the newly notified “Natural Gas and Petroleum Products Distribution Order, 2026,” the government has stipulated that LPG supplies will officially cease three months after a household is notified of PNG availability.
This strategic move, issued under the Essential Commodities Act, aims to bolster national energy security as India faces a significant LPG shortage triggered by ongoing geopolitical tensions and supply disruptions in West Asia, including the blockage of the Strait of Hormuz.
By diverting LPG stocks from urban centers with established pipeline networks to rural regions lacking such infrastructure, the government seeks to ensure a more equitable and resilient fuel distribution across the country.
To ensure a rapid and seamless transition, the new order introduces sweeping “ease of doing business” reforms designed to eliminate bureaucratic bottlenecks in pipeline expansion.
Public authorities and housing societies are now required to grant “Right of Way” permissions within strictly defined timelines; failure to act will result in approvals being “deemed granted.”
In residential complexes, entities controlling access must provide permissions within three working days, while last-mile PNG connectivity must be established within 48 hours of an application.
Oil Secretary Neeraj Mittal described the policy shift as turning a global energy crisis into an opportunity for modernization, noting that PNG offers a more convenient, domestically sourced, and continuous alternative to the traditional cylinder refill system.
While the mandate is firm, the order includes specific provisions for cases where a piped connection is deemed “technically infeasible.” In such instances, the authorized gas entity will issue a No-Objection Certificate (NOC) allowing the household to continue receiving LPG cylinders until the technical hurdles are resolved.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has been appointed as the nodal agency to monitor compliance and penalize entities that fail to begin infrastructure work within four months of approval.
By standardizing charges and fast-tracking the rollout, the government intends to reduce India’s heavy reliance on a single fuel source and create a diversified energy matrix capable of withstanding global market volatility.