Government Bars LPG Connections for Households with PNG
Consumers using both fuels — typically PNG for cooking and LPG as a backup — will now have to rely solely on PNG
The Ministry of Petroleum and Natural Gas has issued a notification amending the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, prohibiting households with Piped Natural Gas (PNG) connections from keeping or obtaining domestic Liquefied Petroleum Gas (LPG) connections.
The amendment, notified on 14 March 2026, has been issued under powers granted by the Essential Commodities Act, 1955 and will come into force from the date of publication in the Official Gazette.
Key Provisions of the Amendment
1. Mandatory surrender of LPG connections
- Any household that already has a PNG connection must immediately surrender its domestic LPG connection.
- Such households will not be allowed to take LPG cylinder refills from government oil companies or their distributors.
2. No new LPG connections for PNG users
- Individuals who already have a PNG connection will not be eligible to obtain a domestic LPG connection in the future.
3. Restriction on Oil Marketing Companies
- Government oil companies are prohibited from issuing LPG connections or supplying refills to consumers who already have PNG connections.
Impact on Consumers
The decision is expected to affect urban households where PNG infrastructure is available, particularly in major cities where city gas distribution networks have expanded.
Consumers using both fuels — typically PNG for cooking and LPG as a backup — will now have to rely solely on PNG.
Policy Rationale
The move is likely aimed at:
- Avoiding duplication of subsidized fuel benefits
- Promoting wider adoption of PNG
- Improving distribution efficiency of LPG cylinders
- Ensuring LPG availability in areas where PNG is not yet available
The policy could also support the expansion of city gas distribution networks being developed by companies regulated by the Petroleum and Natural Gas Regulatory Board.
