Can you keep both PNG and LPG? What rules actually say

Amid the Strait of Hormuz crisis and disruptions to energy supplies from West Asia, the government has moved to shift households towards piped natural gas (PNG) while tightening rules on liquefied petroleum gas (LPG).

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India relies heavily on imports for cooking fuel, with a large share of LPG sourced from the Gulf region, making supplies vulnerable to geopolitical shocks.

The Centre has amended rules to prevent households from using both PNG and subsidised LPG at the same time, while also mandating a transition to piped gas in areas where infrastructure already exists.

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The push is aimed at easing pressure on LPG supply chains, prioritising cylinder availability for regions without pipeline access, and reducing dependence on a single fuel during a period of global uncertainty.

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What the March 14 order says on PNG and LPG

A notification issued on March 14 by the Ministry of Petroleum and Natural Gas amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, making it mandatory for consumers with PNG connections to surrender their domestic LPG cylinders.

"No person having a piped natural gas (PNG) connection and also having a domestic LPG connection shall retain a domestic LPG connection, or take refills of domestic LPG cylinders from any Government oil company, or through their distributors. Such persons will be required to immediately surrender their domestic LPG connection," the order said.

The amendment also prohibits government oil companies and their distributors from issuing new LPG connections or refilling cylinders for households that already have a PNG supply.

Those with PNG connections have also been barred from applying for a domestic LPG connection, effectively ending the possibility of dual access to both fuels in areas where piped gas is available.

What happens if you don't switch

A second order issued on March 24 further tightened the framework. It mandates that LPG supply will be discontinued if households do not switch to PNG, where such connectivity exists.

The order states that LPG supply “shall cease after three months” if a household does not opt for PNG despite availability. An exception is allowed only in cases where PNG is “technically infeasible,” subject to a no-objection certificate.

At a media briefing, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the entity authorised or holding a license to retail CNG and PNG in a geographical area will notify LPG users in areas where piped gas is available.

Why the rules have been tightened

The changes are aimed at prioritising LPG supplies for households without access to piped gas and reducing pressure on supply chains at a time of disruption.

India imports about 88 per cent of its crude oil, 50 per cent of its natural gas, and 60 per cent of its LPG requirements. Before the escalation of conflict in West Asia, more than half of India’s crude imports, around 30 per cent of gas, and 85–90 per cent of LPG imports came from the region.

The conflict has disrupted flows through the Strait of Hormuz, a key transit route for Gulf energy supplies. While India has partly offset crude shortages by sourcing oil from countries including Russia, gas supplies have been curtailed to industrial users, and LPG availability has tightened for commercial consumers such as hotels and restaurants.

Push for PNG rollout

In parallel, the Petroleum and Natural Gas Regulatory Board (PNGRB) has asked city gas distribution companies to accelerate PNG connections to households, particularly in areas where pipeline infrastructure already exists.

India's total natural gas consumption stands at around 189 million metric standard cubic metres per day, of which about 97.5 mmscmd is produced domestically. Of the 13.94 mmscmd of administered price mechanism gas allocated to the city gas sector, only about 3.63 mmscmd is used in household PNG, with the rest going to compressed natural gas for vehicles.