Big gas rule change! These households may have to give up LPG connection by June

Amid rising LPG cylinder prices and a nationwide push for cleaner fuel infrastructure, the government is tightening rules around domestic cooking gas usage and encouraging households to shift towards piped natural gas (PNG) connections. The latest measures are part of the Centre’s broader “One Household, One Gas Connection” policy aimed at streamlining fuel distribution and reducing dependence on LPG cylinders in areas where PNG infrastructure is already available.

Authorities have started identifying households that are simultaneously using both LPG cylinders and PNG services. The move is intended to prevent misuse of subsidised LPG connections, curb black marketing, and ensure that LPG supplies reach households that genuinely require them due to lack of PNG access.

You may lose LPG refill eligibility

In March 2026, the Ministry of Petroleum and Natural Gas issued revised guidelines for domestic gas connections. Under the new rules, households that already have a piped natural gas connection may no longer be eligible to retain domestic LPG connections or apply for LPG refills through government-backed oil marketing companies and distributors.

Effectively, households with functional PNG infrastructure are being encouraged to fully transition away from LPG cylinders.

The government believes the move will help optimise LPG allocation, especially in regions where PNG networks have already expanded significantly. Officials have also indicated that monitoring mechanisms are being strengthened to identify duplicate usage of LPG and PNG connections within the same household.

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Commercial establishments

In another major development, the Petroleum Ministry on May 4 directed city gas distribution (CGD) companies to prioritise PNG connections for commercial establishments such as hotels, restaurants, canteens, and catering businesses.

The directive aims to address concerns regarding the availability and distribution of commercial LPG cylinders, which continue to face pressure from rising demand in urban areas.

Major CGD companies involved in the expansion drive include Indraprastha Gas Limited (IGL), Mahanagar Gas Limited (MGL), GAIL Gas, and Bharat Petroleum Corporation Limited (BPCL). The Centre has also instructed states, Union Territories, and central ministries to fast-track approvals needed for the expansion of gas pipeline infrastructure and city gas networks.

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India’s major oil marketing companies — Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum — continue to determine LPG cylinder prices for domestic, commercial, and industrial users. Their retail LPG brands include Indane, Bharat Gas, and HP Gas.

LPG connections

One of the most significant changes under the new framework is the possible discontinuation of LPG supply for households that fail to switch to PNG despite availability in their area.

Under the Natural Gas and Petroleum Products Distribution Order, 2026, announced in March, households were given 90 days to transition to PNG wherever infrastructure is available. That timeline is expected to end by June 30, 2026.

According to the ministry, the new order is designed to provide a streamlined and time-bound framework for laying, operating, and expanding gas pipelines across the country. The government says the initiative will help reduce delays related to permissions, land access, and network approvals while accelerating the rollout of domestic PNG connections.

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Officials believe wider PNG adoption will strengthen India’s gas-based economy, improve energy security, and support the transition towards cleaner and more efficient fuel systems.

How consumers can apply for PNG connections

Consumers interested in shifting to PNG can apply online through gas distribution companies such as IGL, MGL, BPCL, and GAIL Gas. Most companies have enabled digital applications through their official websites.

Applicants generally need to submit identity proof, address proof, ownership documents, and passport-size photographs. Tenants are also required to provide a No Objection Certificate (NOC) from the landlord along with ownership proof.

After verification and approval, the gas company conducts a site inspection before installing pipelines, meters, valves, and regulators inside the kitchen. Consumers are then assigned a Business Partner (BP) number to manage billing and service requests.

The government has also extended the National PNG Drive 2.0 till June 30, 2026, to maintain momentum in expanding PNG coverage across urban and semi-urban regions.

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