Why the Centre wants households to shift from LPG cylinders to PNG
The government has issued the Natural Gas and Petroleum Products Distribution Order, 2026, setting a time-bound plan to shift households to piped gas. Under the rule, LPG supply may be stopped if homes in PNG-covered areas fail to switch to piped gas within three months of notice.
- Mar 26, 2026,
- Updated Mar 26, 2026 2:11 PM IST
India’s cooking fuel policy is undergoing a significant shift, with the Central government stepping up efforts to move households from LPG cylinders to piped natural gas (PNG) in cities where pipeline connectivity already exists. The push comes at a time when global fuel supply risks are rising, import dependence remains high.
As part of this transition, the government has issued the Natural Gas and Petroleum Products Distribution Order, 2026, which introduces a time-bound framework for migration to piped gas. Under the new rule, households located in areas with PNG infrastructure may have their LPG supply discontinued if they do not switch to piped gas within three months of receiving a notice. An exception will be allowed only in cases where providing a PNG connection is technically not feasible, and this must be certified by the authorised gas distribution entity.
The move signals a clear change in the government’s urban energy strategy. LPG cylinders, which currently account for the bulk of household cooking fuel use in India, are gradually being replaced with pipeline-based supply in areas where the network is already in place.
MUST READ: LPG or PNG: Which one is better for you?
Supply risks & global crisis
One of the biggest reasons behind the push is energy security.
Recent geopolitical tensions in West Asia, including disruptions near the Strait of Hormuz, have highlighted India’s vulnerability to fuel supply shocks. A large share of global LPG and LNG shipments passes through this narrow route, and any disruption can affect domestic supply.
India currently depends heavily on imports for cooking fuel. LPG imports account for around 60% of domestic consumption, while natural gas imports meet roughly half of the country’s demand.
With gas facilities damaged in the Gulf region and shipping routes under pressure, the government is trying to reduce the risk of shortages by strengthening domestic pipeline-based distribution, which can be supplied from multiple sources including domestic fields and different LNG terminals.
Officials say a strong pipeline network is more resilient than cylinder-based supply, which depends on shipping, bottling plants, transport, and dealer networks.
LPG vs PNG users
Another key reason for the push is the large gap between LPG and PNG adoption.
India has nearly 330 million LPG users, but only about 16.2 million PNG consumers, showing that piped gas penetration remains limited despite years of expansion.
The government estimates that nearly 60 lakh LPG consumers already live in areas where PNG pipelines exist, making them immediate candidates for migration.
In recent weeks, the transition has picked up pace, with lakhs of new PNG connections issued and a similar number of applications received, indicating faster adoption in urban areas.
MUST READ: Who are 'notified PNG customers’ and why it matters for your LPG connection
Lower cost and subsidy burden
Cost is another major factor behind the shift.
LPG involves multiple stages — import, bottling, storage, transport, and delivery — each adding to the final price. PNG, once connected through pipelines, eliminates much of this supply chain, making it cheaper for consumers in many cities.
In metro regions such as Delhi, Mumbai, and Ahmedabad, households using PNG often pay significantly less than those using market-priced LPG cylinders.
The transition also helps the government reduce subsidy pressure. The Centre spends heavily on LPG support schemes, especially under the Ujjwala programme, which provides subsidised cylinders to crores of households. Moving urban consumers to PNG reduces long-term fiscal burden.
Why PNG is being promoted
The government is also promoting PNG for practical and environmental reasons.
Piped gas removes the need for cylinder booking, delivery, and storage, making it more convenient for households. It also reduces the risks associated with storing pressurised cylinders in kitchens.
From an environmental perspective, natural gas burns cleaner than LPG, coal, or biomass, making PNG expansion part of India’s broader plan to reduce urban pollution and increase the share of gas in the energy mix.
Building a national gas grid
The Centre is simultaneously pushing pipeline expansion across the country, especially in northern and western states such as Delhi-NCR, Haryana, Gujarat, Uttar Pradesh, and Maharashtra, while also accelerating projects in southern states.
A uniform national framework is being developed to speed up approvals, remove local permission hurdles, and fast-track city gas distribution networks.
The long-term goal is clear — move households away from cylinder-based fuel to pipeline-based supply, improve energy security, cut imports, and make cooking fuel cheaper and more reliable for urban India.
India’s cooking fuel policy is undergoing a significant shift, with the Central government stepping up efforts to move households from LPG cylinders to piped natural gas (PNG) in cities where pipeline connectivity already exists. The push comes at a time when global fuel supply risks are rising, import dependence remains high.
As part of this transition, the government has issued the Natural Gas and Petroleum Products Distribution Order, 2026, which introduces a time-bound framework for migration to piped gas. Under the new rule, households located in areas with PNG infrastructure may have their LPG supply discontinued if they do not switch to piped gas within three months of receiving a notice. An exception will be allowed only in cases where providing a PNG connection is technically not feasible, and this must be certified by the authorised gas distribution entity.
The move signals a clear change in the government’s urban energy strategy. LPG cylinders, which currently account for the bulk of household cooking fuel use in India, are gradually being replaced with pipeline-based supply in areas where the network is already in place.
MUST READ: LPG or PNG: Which one is better for you?
Supply risks & global crisis
One of the biggest reasons behind the push is energy security.
Recent geopolitical tensions in West Asia, including disruptions near the Strait of Hormuz, have highlighted India’s vulnerability to fuel supply shocks. A large share of global LPG and LNG shipments passes through this narrow route, and any disruption can affect domestic supply.
India currently depends heavily on imports for cooking fuel. LPG imports account for around 60% of domestic consumption, while natural gas imports meet roughly half of the country’s demand.
With gas facilities damaged in the Gulf region and shipping routes under pressure, the government is trying to reduce the risk of shortages by strengthening domestic pipeline-based distribution, which can be supplied from multiple sources including domestic fields and different LNG terminals.
Officials say a strong pipeline network is more resilient than cylinder-based supply, which depends on shipping, bottling plants, transport, and dealer networks.
LPG vs PNG users
Another key reason for the push is the large gap between LPG and PNG adoption.
India has nearly 330 million LPG users, but only about 16.2 million PNG consumers, showing that piped gas penetration remains limited despite years of expansion.
The government estimates that nearly 60 lakh LPG consumers already live in areas where PNG pipelines exist, making them immediate candidates for migration.
In recent weeks, the transition has picked up pace, with lakhs of new PNG connections issued and a similar number of applications received, indicating faster adoption in urban areas.
MUST READ: Who are 'notified PNG customers’ and why it matters for your LPG connection
Lower cost and subsidy burden
Cost is another major factor behind the shift.
LPG involves multiple stages — import, bottling, storage, transport, and delivery — each adding to the final price. PNG, once connected through pipelines, eliminates much of this supply chain, making it cheaper for consumers in many cities.
In metro regions such as Delhi, Mumbai, and Ahmedabad, households using PNG often pay significantly less than those using market-priced LPG cylinders.
The transition also helps the government reduce subsidy pressure. The Centre spends heavily on LPG support schemes, especially under the Ujjwala programme, which provides subsidised cylinders to crores of households. Moving urban consumers to PNG reduces long-term fiscal burden.
Why PNG is being promoted
The government is also promoting PNG for practical and environmental reasons.
Piped gas removes the need for cylinder booking, delivery, and storage, making it more convenient for households. It also reduces the risks associated with storing pressurised cylinders in kitchens.
From an environmental perspective, natural gas burns cleaner than LPG, coal, or biomass, making PNG expansion part of India’s broader plan to reduce urban pollution and increase the share of gas in the energy mix.
Building a national gas grid
The Centre is simultaneously pushing pipeline expansion across the country, especially in northern and western states such as Delhi-NCR, Haryana, Gujarat, Uttar Pradesh, and Maharashtra, while also accelerating projects in southern states.
A uniform national framework is being developed to speed up approvals, remove local permission hurdles, and fast-track city gas distribution networks.
The long-term goal is clear — move households away from cylinder-based fuel to pipeline-based supply, improve energy security, cut imports, and make cooking fuel cheaper and more reliable for urban India.