New Delhi, March 25, 2026: In a significant push to accelerate the adoption of piped natural gas (PNG) and reduce reliance on imported liquefied petroleum gas (LPG), the Indian government has issued a strict 90-day ultimatum for households in urban and semi-urban areas where PNG infrastructure is available or can be extended.
The Ministry of Petroleum and Natural Gas notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 on March 24, invoking the Essential Commodities Act. Under this order, if a household in a notified area with PNG access refuses to switch despite receiving notice, LPG cylinder supplies to that address shall cease after three months. Oil marketing companies will be required to halt deliveries accordingly.
# Background and Rationale
The move comes amid ongoing LPG supply pressures triggered by geopolitical tensions in West Asia, including disruptions around the Strait of Hormuz, which have affected imports (India relies on imports for about 60% of its LPG needs). The government has been actively urging both domestic and commercial consumers to shift to PNG to ease the burden on subsidised LPG, prioritise domestic users, and promote a cleaner, more reliable fuel source.
PNG offers several advantages: it is supplied continuously via pipelines (eliminating the need for cylinder bookings and refills), is often more affordable in the long run, and supports India's energy security goals since the country is relatively more self-sufficient in natural gas.
Earlier measures include:
- Barring households with an existing PNG connection from retaining or refilling domestic LPG cylinders (they must surrender the LPG connection).
- Urging commercial and industrial users (hotels, restaurants, etc.) in major cities to switch to PNG, with city gas distribution (CGD) companies directed to expedite connections.
# Key Provisions of the New Order
- Mandatory Right of Way: Housing societies, residential areas, and landowners must grant access for PNG pipeline installation within three working days of application. Delays can lead to public notices and potential LPG cut-off after three months (unless technical infeasibility is certified).
-Streamlined Approvals: The order simplifies permissions, right-of-way norms, and operational procedures for CGD networks to speed up expansion.
Targeted Areas: Applies primarily to urban and semi-urban regions covered by authorised CGD entities (currently spanning a large part of the country).
-Safeguards: LPG supply continues uninterrupted for areas without PNG feasibility. The government has also asked states to fast-track approvals, waive or reduce local levies (road cutting fees, etc.), and offer incentives for quicker PNG rollout.
Officials estimate that several million households could switch in the short term, helping conserve LPG for those without pipeline access.
# Government Support and Appeals
The Petroleum and Natural Gas Regulatory Board (PNGRB) has directed CGD companies to prioritise PNG connections for residential schools, colleges, hostels, community kitchens, and anganwadis within five days where feasible. States are being incentivised with higher commercial LPG allocations (up to 30%) if they actively support PNG expansion. The Centre has also asked all ministries to assess PNG demand in government canteens and offices.
Consumers are advised against panic booking of LPG cylinders and to rely on official channels for home delivery. Dual users (PNG + LPG) have already been asked to surrender their LPG connection.
# Reactions and Challenges
While the policy aims to modernise India's cooking fuel ecosystem and reduce import dependence, implementation could face hurdles in densely populated urban societies that have historically resisted pipeline installations due to space or safety concerns. City gas distributors are ramping up outreach, and incentives are being offered to ease the transition.
The government has assured that there is no nationwide LPG shortage for domestic users, but the situation remains "concerning" due to global factors, and hoarding or black marketing will be dealt with strictly.
This directive marks a decisive step in India's long-term strategy to expand city gas networks (authorised in hundreds of geographical areas) and shift millions of households toward cleaner energy. Households in covered areas are encouraged to contact their local CGD provider immediately to avoid disruption in cooking gas supply after the 90-day window.
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