India adds LPG users, pipelines and EV chargers in 2025

India’s petroleum and natural gas sector recorded incremental gains in fuel access, gas infrastructure and alternative fuels during 2025, according to year-end data from the Ministry of Petroleum and Natural Gas. While headline numbers point to steady expansion, analysts say challenges around sustained usage, subsidy dependence and import exposure remain unresolved.

Under the Pradhan Mantri Ujjwala Yojana (PMUY), the number of LPG beneficiaries rose to about 10.35 crore as of December 1, 2025. To address pending demand, the government approved 25 lakh additional LPG connections for FY26 and simplified eligibility norms by moving to a single deprivation declaration.

However, higher access has not fully translated into consistent usage. Average LPG consumption increased from around three refills per household in FY20 to 4.47 refills in FY25, with a pro-rated estimate of 4.85 refills in FY26—still below levels seen as sufficient for complete fuel switching. To support affordability, PMUY beneficiaries continued to receive a ₹300 subsidy per cylinder for up to nine refills annually, keeping fiscal support central to adoption.

The ministry also pushed subsidy rationalisation through biometric Aadhaar authentication, which covered 71% of PMUY consumers and 62% of non-PMUY users by December 2025. A nationwide mobile-based authentication drive was launched to reduce duplication and leakages.

Fuel retail infrastructure expanded gradually. Over 90,000 retail outlets were enabled with digital payments, supported by 2.71 lakh POS terminals, while more than 3,200 fuel delivery bowsers were deployed to improve access in remote regions.

Electric mobility infrastructure scaled up primarily through oil marketing companies. Under FAME-II, 8,932 EV charging stations were installed at fuel stations, while OMCs added over 18,500 chargers from internal resources. Public sector OMCs are also developing 4,000 integrated “energy stations” between FY25 and FY29; 1,064 stations were operational as of November 2025.

In natural gas, operational pipeline length rose to 25,429 km by June 2025, with another 10,459 km under construction. The rollout of a Unified Pipeline Tariff covered about 90% of operational pipelines, lowering transportation costs for distant markets but reshaping revenue structures for operators.

City Gas Distribution coverage expanded to 307 geographical areas, with PNG connections reaching 1.57 crore and CNG stations exceeding 8,400 by September 2025. Revised gas allocation guidelines were introduced to better align supply with demand, though exposure to volatile LNG prices remains a concern.

Alternative fuels made progress from a low base. Over 130 compressed biogas plants were commissioned under the SATAT initiative, and mandatory blending of CBG in CNG and PNG began in FY26. Ethanol blending averaged 19.24% in ESY 2024–25, nearing the 20% target, with government estimates pegging cumulative foreign exchange savings at over ₹1.55 lakh crore.

Upstream reforms included the enactment of the Oilfields (Regulation and Development) Amendment Act, 2025 and the award of 172 exploration blocks with committed investments of about $4.36 billion, though production gains are expected only over the medium term.