India Mandates PNG Switch: LPG Supply Ends in 3 Months Where Available

The Indian government has introduced a significant policy shift, mandating households in areas with Piped Natural Gas (PNG) infrastructure to transition from Liquefied Petroleum Gas (LPG) cylinders, or face the discontinuation of their LPG supply. This directive comes through the newly notified Natural Gas and Petroleum Products Distribution Order, 2026, issued by the Union Ministry of Petroleum and Natural Gas. Under this order, once an authorized gas entity informs a household that PNG connectivity is available at their doorstep, consumers are given a strict three-month window to apply for a PNG connection. Failure to comply with this deadline will result in the automatic termination of LPG cylinder refills to that address. This applies to both domestic and commercial users. The government has clarified that this mandate is not universal, and exemptions will be granted in cases where a PNG connection is deemed "technically infeasible." In such situations, the authorized entity is required to issue a No-Objection Certificate (NOC), allowing the household to continue using LPG until the technical hurdles are resolved. Authorized entities are also obligated to maintain detailed records for such cases and withdraw the NOC once PNG supply becomes operational. This policy initiative is primarily driven by the government's aim to strengthen India's energy security, optimize fuel distribution, and reduce the country's heavy reliance on LPG imports. India imports approximately 60% of its total LPG requirements, with nearly 90% of these imports passing through the geopolitically sensitive Strait of Hormuz. The decision gains particular urgency amidst ongoing geopolitical tensions and disruptions in West Asia, which have impacted global oil and gas supply chains and led to an LPG shortage in India. To facilitate the rapid expansion of the natural gas network, the order also introduces significant reforms to streamline the approval processes for pipeline infrastructure development. Public authorities, including central and state government departments, urban local bodies, and municipal corporations, are now required to grant permissions or right-of-way within specified timelines. If these authorities fail to act within the stipulated period, the approvals will be treated as deemed granted. The order further prohibits authorities from imposing any charges beyond those prescribed under the new framework. In residential complexes, entities controlling access must grant permissions for pipeline installation within three working days, and last-mile PNG connectivity is expected to be provided within 48 hours. Applications for pipeline connectivity in such areas cannot be rejected. Designated officers have also been empowered with civil court-like authority to resolve disputes related to land access and right of way. The Petroleum and Natural Gas Regulatory Board (PNGRB) has been designated as the nodal agency responsible for overseeing the entire implementation process. Its role includes tracking approvals, rejections, and ensuring compliance by all involved entities. Pipeline operators, too, are bound by strict timelines, required to commence laying pipelines within four months of receiving approval, or risk penalties, including the potential loss of exclusivity in a particular area. This strategic push aims to redirect available LPG supplies from urban centers with established pipeline networks to rural and underserved regions that lack such infrastructure, ensuring a more equitable distribution of cooking fuel across the nation. The government views this transition to PNG as a more reliable and convenient alternative, offering continuous supply through pipelines directly to homes, thereby eliminating the need for cylinder refills and booking.

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