Shift to PNG, get incentives: Govt pushes to cut LPG demand amid Hormuz disruption

The Ministry of Petroleum and Natural Gas said on Monday that IGL, GAIL, MGL and BPCL will provide incentives to consumers applying for new PNG connections before March 31. This comes as authorities are looking to ease pressure on LPG supplies by encouraging households to shift to piped natural gas.

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During an inter-ministerial briefing, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery), Ministry of Petroleum and Natural Gas, said consumers can switch to PNG by getting in touch with City Gas Distribution (CGD) helplines.

Indraprastha Gas Ltd. (IGL) is offering free gas worth Rs 500 to consumers registering or starting services before March 31, 2026.

Mahanagar Gas Ltd. (MGL) has waived the Rs 500 registration charge for DPNG consumers and removed the Security Deposit (SD) for commercial consumers, which earlier ranged from Rs 1 lakh to Rs 5 lakh.

GAIL Gas Ltd. has also announced free gas worth Rs 500 for domestic consumers, while BPCL has waived the security deposit for all commercial connections.

Consumers can apply for PNG connections through email, customer portals, letters, or call centres of the respective CGD companies, and the companies have been asked to proactively reach out to potential customers.

Sharma said authorities are also stepping up action against black marketing and hoarding of LPG cylinders. “Surprise checks of distributorships and ROs are being conducted to prevent black marketing/hoarding of cylinders,” she said.

The joint secretary added that on March 15, 2026, more than 1,100 LPG distributorships and retail outlets were inspected by PSU OMC officers as part of surprise checks.

During the meeting,  Sharma mentioned that high-level meetings have also been held in various states and Union Territories to review the LPG situation, while most states have set up control rooms and are conducting press briefings.

“Raids continue to be carried out by multiple states (UP, Haryana, Andhra Pradesh, MP, Assam, Mizoram etc) to check hoardings and black marketing,” she said.

To prevent diversion of cylinders, Sharma said deliveries authenticated through the Delivery Authentication Code (DAC) system are being pushed.

“DAC (Delivery authentication code) deliveries have increased from 53% in Feb-2026 to 72% on 15.03.2026,” the joint secretary added.

She added that LPG distributors are continuing to operate to keep supplies moving. “Despite being a Sunday, LPG distributors are working to supply to consumers at best,” Sharma said.

The ministry also said telephone lines have been increased and online booking systems expanded, while India is procuring LPG from wherever possible to manage the demand-supply situation. “The LPG crisis problem is being tackled at various fronts,” Sharma said.