Fuel crisis: LPG supply to be cut off if households refuse PNG switch where available, says government order

The government has mandated a halt to the supply of cooking gas LPG to households unless consumers switch to piped natural gas where such connection is available, under a new order aimed at accelerating gas network expansion and reducing reliance on single fuel.

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As India grapples with LPG shortages as war in West Asia disrupts supplies from key sources, the government is pushing households and commercial users to switch to Piped Natural Gas (PNG), a more affordable alternative both domestically produced and through diversified supply.

PNG is continuously supplied to kitchen burners via pipelines, eliminating the need to book refills.

The Ministry of Petroleum and Natural Gas has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Construction, Operation and Expansion of Pipelines and Other Facilities) Order 2026, which aims to accelerate pipeline infrastructure, streamline approvals and promote the transition from LPG to PNG to strengthen energy security.

The order, issued on March 24, states that if a household does not choose PNG despite it being available, the supply of LPG “will be stopped after three months”. However, the provision allows the provision of a piped connection to continue subject to a no-objection certificate where it is “technically not possible”.

The move is intended to free up LPG supplies from regions with pipeline connections and redirect them to regions without such infrastructure, while also promoting “fuel diversification” amid global supply disruptions, including damage to liquefaction plants in the Gulf and the ongoing blockade of the Strait of Hormuz.

Commenting on the order, Petroleum Minister Neeraj Mittal, in his post on X, said that “a crisis has been turned into an opportunity” thanks to the ease of making business reforms.

The order, issued under the Essential Commodities Act, aims to speed up pipeline infrastructure by easing approvals, standardizing fees and providing time-bound permits.

To facilitate rapid rollout, public authorities must issue right-of-way or permits within predetermined time frames; Otherwise, which approvals will be deemed to have been given. The order also prohibits authorities from bringing charges beyond those specified.

In residential areas, organizations controlling access must grant permission within three working days and the last mile PNG connection must be provided within 48 hours. Applications for pipeline connection in such areas cannot be rejected.

The decision also provides for the intervention of designated officials with civil court-like powers to resolve disputes over access to land and grant rights of way when necessary.

Authorized entities must begin laying pipelines within four months of approval or face penalties, including possible loss of exclusivity.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has been designated as the central body that will monitor implementation, including monitoring approvals, rejections and compliance.

If right-of-way or right-of-use permission for laying pipelines to supply PNG to residences is not granted by the organizations controlling access to the site, a notice will be issued and after three months, fuel marketing companies will stop supplying LPG.

The statement, which laid out the pipeline for fuel supply, listed “The consequences of households not applying for PNG connection and not obtaining this connection when notified by the authorized institution” and added: “LPG supply to such an address will be stopped after three months from the date of communication.” It was said.

“The supply of LPG to a household will not be stopped if the competent authority issues a no-objection certificate (NOC) on the grounds that it is not technically possible to provide piped natural gas connection or gas supply to the household in question,” the statement said.

The competent authority shall maintain records regarding the reasons for such technical infeasibility and withdraw the NOC as soon as it is able to provide piped gas connection to such houses and make it functional.