Government orders PNG switch or LPG supply cut in pipeline areas

The government has ordered households in areas with existing piped natural gas (PNG) infrastructure to switch from LPG cylinders to PNG connections within three months of notice, or lose gas refill supplies. The directive addresses mounting pressure on India's LPG imports amid the West Asia conflict. Petroleum ministry joint secretary Sujata Sharma described it as a supply security measure.

The Natural Gas and Petroleum Products Distribution Order, 2026, issued on Tuesday under the Essential Commodities Act, directs local gas distributors to notify households in areas with existing pipeline infrastructure via registered or speed post. Households must apply for a PNG connection within three months, or LPG supply to that address will cease, as per the gazette notification. Applications can be submitted by the lawful occupier or premises owner. An exemption applies if the distributor certifies technical infeasibility with a no-objection certificate. Sujata Sharma, joint secretary in the petroleum ministry, confirmed the order during an inter-ministerial briefing. She stated, “Our import dependency for LPG is much higher than the import dependency for PNG or LNG. We produce 50% domestically as far as PNG is concerned. So, this is in the interest of nation that we shift from LPG to PNG.” The government estimates six million consumers can transition, with 0.22 million already having done so. India has 16.2 million domestic PNG connections compared to over 332 million LPG consumers, which rose from 140 million in 2014, including 105.6 million subsidised under PM Ujjwala Yojana. Over 60% of LPG is imported, with Qatar supplying 47%. Supplies from Qatar's Ras Laffan have been shut since Iran's strike on March 18, amid Strait of Hormuz navigation challenges. The notification also mandates landowners to grant right-of-way for pipeline laying.

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Indian crowds queue for scarce LPG cylinders amid crisis from Iran conflict, with closed hotels and government priority signs.
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Iran conflict deepens LPG crisis: Government escalates with Essential Commodities Act

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Building on March 5 directive to refineries, the government invoked the Essential Commodities Act on March 10, 2026, amid worsening LPG shortages from the Iran conflict and Strait of Hormuz disruptions. Commercial supplies have halted, severely impacting hotels, restaurants, and crematoriums across India, while prioritizing domestic use.

The government has doubled the daily quota of 5-kg LPG cylinders for migrant workers amid supply disruptions linked to tensions around the Strait of Hormuz. The Ministry of Petroleum and Natural Gas aims to stabilise fuel supplies with this move. Joint Secretary Sujata Sharma announced the decision via a letter dated April 6.

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The Ministry of Petroleum and Natural Gas has ordered all oil refining companies operating in India to maximise the use of propane and butane streams for LPG production. This LPG will be supplied exclusively to domestic consumers through IndianOil, Hindustan Petroleum, and Bharat Petroleum. The directive aims to protect household users amid global fuel supply challenges arising from the ongoing conflict in West Asia.

As Middle East tensions disrupt gas supplies to India, causing LPG shortages and price hikes, the government's Natural Gas Regulation Order, 2026, prioritizes allocations for essential sectors like fertilizers at 70% of average consumption. This has sparked a surge in fertilizer stocks, with gains up to 17%.

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Amid concerns over LPG availability, the Gujarat government on March 20, 2026, clarified there is no cooking gas shortage in the state and urged citizens not to heed rumours. Authorities stated adequate stock is available with smooth distribution systems, including doorstep deliveries to avoid queues at agencies. They promoted technology-driven booking via multiple digital channels for consumer convenience.

Energy and Mineral Resources Minister Bahlil Lahadalia affirmed that the government will not raise prices of subsidized fuel oil (BBM) and LPG amid the Middle East geopolitical crisis. The statement came after opening the XI Regional Conference of Golkar Party in North Sulawesi in Manado on April 11, 2026. National stocks of BBM and LPG are secure for days ahead.

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India's Armed Forces are exploring biogas stoves and expanded solar and wind energy to conserve LPG and fuel amid the global energy crisis triggered by the Iran war. Orders to procure biogas stoves will be initiated soon by the Army, officials told The Indian Express. Restrictions on vehicle movements are also under discussion.

 

 

 

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