CGD Entities Asked to Prioritise PNG Connections as Govt Pushes Fuel Stability Amid West Asia Crisis
The government has advised CGD companies such as IGL, MGL, GAIL Gas, and BPCL to accelerate PNG connections for restaurants, hotels, and canteens, particularly in urban areas
In a comprehensive response to the evolving geopolitical situation in West Asia and the closure of the Strait of Hormuz, the Government of India has directed City Gas Distribution (CGD) entities to prioritise PNG (Piped Natural Gas) connections for commercial establishments, while simultaneously ensuring stable fuel availability across the country.
The move comes as part of a broader strategy to reduce dependence on LPG and maintain uninterrupted energy supply amid global uncertainties.
PNG Push for Commercial Sector
The government has advised CGD companies such as IGL, MGL, GAIL Gas, and BPCL to accelerate PNG connections for restaurants, hotels, and canteens, particularly in urban areas.
- Commercial LPG consumers have been urged to switch to PNG
- Incentives are being offered to promote domestic and commercial PNG adoption
- CGD entities have been directed to shorten connection timelines
- Ministries instructed to fast-track approvals for CGD infrastructure
Additionally, all Central Government establishments, including offices and canteens, have been advised to transition to PNG wherever available.
Ministries and States Mobilised for CGD Expansion
The Centre has written to States/UTs and Ministries to:
- Expedite permissions for CGD network expansion
- Establish time-bound approval mechanisms
- Appoint nodal officers to assess PNG demand
- Promote PNG adoption across government infrastructure
The Petroleum and Explosives Safety Organisation (PESO) has also committed to clearing CGD applications within 10 days.
LPG Supply Boosted to 50% for Commercial Use
To address immediate demand, the government has increased commercial LPG allocation to 50%.
Priority sectors include:
- Restaurants and dhabas
- Hotels and industrial canteens
- Food processing and dairy units
- Government-subsidised canteens
- Community kitchens
- Migrant workers (via 5 kg FTL cylinders)
Over 13,479 MT of commercial LPG has been lifted in the past week.
At the same time:
- Domestic LPG supply remains stable
- Panic bookings have declined significantly
- Deliveries are proceeding normally via DAC system
Crackdown on Hoarding and Black Marketing
Strict enforcement measures are underway:
- 3,500+ raids conducted nationwide
- Around 1,400 LPG cylinders seized
- PSU Oil Marketing Companies carried out 2,000+ surprise inspections
States have been directed to act under:
- Essential Commodities Act, 1955
- LPG Control Order, 2000
- Petroleum Act and Rules
Fuel Availability and Refinery Operations Stable
- All refineries are operating at high capacity
- Adequate stocks of petrol, diesel, and crude maintained
- No fuel dry-outs reported across retail outlets
Natural gas supply remains prioritised:
- 100% supply to domestic PNG and CNG transport
- Industrial/commercial supply maintained at 80% levels
Kerosene Allocation Increased
To support vulnerable regions:
- Additional 48,000 KL kerosene allocated
- States asked to identify distribution points
- 15 States have issued allocation orders so far
Maritime Operations Normal, Indian Crew Returns Safely
Despite tensions in the Gulf region:
- No congestion reported at Indian ports
- Maritime sector functioning smoothly
In a positive development, 15 Indian crew members of MT Safesea Vishnu have safely returned to India from Iraq.
The government continues to closely monitor developments in West Asia, with a strong focus on energy security and the safety of Indian nationals abroad.
