PNG vs LPG: Refuse to Switch to PNG, and Your LPG Supply Will Be Cut Off... Government Issues Major Order..

The Central Government has taken a major decision regarding domestic gas supply. The government has explicitly stated that in areas where PNG (Piped Natural Gas) connections are available and accessible to households, residents must obtain a PNG connection. Failure to do so will result in the discontinuation of LPG supply to those households within three months. The objective of this order is to accelerate the expansion of the gas network and reduce dependence on a single fuel source.

India is currently facing an LPG shortage due to supply disruptions from key sources caused by the conflict in West Asia; consequently, the government is encouraging households and commercial users to switch to piped natural gas. PNG is supplied continuously through pipelines directly to kitchen burners, thereby eliminating the need to book refills.

The Ministry of Petroleum and Natural Gas has issued the ‘Natural Gas and Petroleum Products Distribution Order, 2026.’ It aims to expedite the expansion of pipeline infrastructure, streamline the approval process, and promote the transition from LPG to PNG in order to bolster energy security.

**What is the Objective?**
The objective of this initiative is to free up LPG supplies from regions where pipeline connectivity is available and divert them toward areas lacking such infrastructure. Furthermore, one of its goals is to promote "diversification of fuel sources" amidst global supply disruptions—such as damage to liquefaction facilities in the Gulf region and the ongoing blockade in the Strait of Hormuz.

Commenting on this order, Oil Secretary Neeraj Mittal stated in a post that, through reforms aimed at enhancing the "Ease of Doing Business," "a crisis has been transformed into an opportunity." Issued under the Essential Commodities Act, this order seeks to accelerate the expansion of pipeline infrastructure by simplifying approval procedures, standardizing fees, and ensuring that permissions are granted within stipulated timeframes.

To ensure the rapid implementation of this process, public officials are required to grant ‘Right of Way’ permissions within the prescribed time limits. If they fail to do so, it will be presumed that approval has been granted. This order also prohibits officials from levying charges in excess of the prescribed fees. Entities controlling access to residential areas must grant permissions within three working days and ensure the provision of PNG's last-mile connectivity’ within 48 hours. Applications submitted for pipeline connectivity in such areas cannot be rejected. Furthermore, the order stipulates that specific officials will be vested with powers akin to those of a Civil Court to resolve disputes regarding land access and to grant ‘Right of Way’ wherever necessary.

**Supply to be Discontinued in 3 Months**
If entities managing a housing complex fail to grant the ‘Right of Way’—or permission for usage—required to lay pipelines for delivering PNG to homes, a notice will be issued to them. Three months after the issuance of this notice, Oil Marketing Companies will discontinue the supply of LPG to that location. The order also outlines the "consequences" that ensue when a household—despite receiving a notice from the authorized entity responsible for laying the gas supply pipelines in that area—fails to apply for or obtain a PNG connection.

The order states: "The supply of LPG to such an address shall be completely discontinued three months from the date of receipt of the notice." The order further clarifies: "The LPG supply to a household shall not be discontinued unless the authorized entity issues a ‘No-Objection Certificate’ (NOC) stating that, due to technical reasons, it is not feasible to deliver gas to that specific household via a pipeline. The authorized entity must maintain a record of the reasons underlying such technical impediments or infeasibility. As soon as it becomes technically feasible for the entity to deliver gas via pipeline to such households and commission the service, it shall revoke the NOC previously issued by it."

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