Amid disruptions in global energy supplies, the government has made it mandatory for households with piped natural gas (PNG) connections to surrender their domestic liquefied petroleum gas (LPG) connections.
The Ministry of Petroleum and Natural Gas has amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000 under the Essential Commodities Act, barring PNG consumers from retaining or obtaining subsidised domestic LPG connections.
“No person having a piped natural gas (PNG) connection and also having a domestic LPG connection shall retain a domestic LPG connection, or take refills of domestic LPG cylinders from any Government oil company, or through their distributors. Such persons will be required to immediately surrender their domestic LPG connection,” the government said in a notification issued on March 14.
The order also prohibits government oil companies and their distributors from providing domestic LPG connections or refilling cylinders for consumers who already have a PNG supply.
The move is aimed at prioritising LPG supplies for households that do not have access to piped gas.
The decision comes amid escalating tensions in the Middle East, which have disrupted shipping movements through the Strait of Hormuz—one of the world’s most critical oil transit chokepoints—sending shockwaves through global oil markets. Oil prices have risen sharply over the past two weeks, with several countries reporting supply shortages.
India imports about 88 per cent of its crude oil, 50 per cent of its natural gas and nearly 60 per cent of its LPG requirements. More than half of India’s crude imports, around 30 per cent of its gas imports, and 85–90 per cent of its LPG imports come from West Asian countries such as Saudi Arabia and the United Arab Emirates.
As a precautionary measure, the government has curtailed gas supplies to industrial users and reduced LPG availability for commercial establishments such as hotels and restaurants in order to prioritise household consumption.
Meanwhile, the Petroleum and Natural Gas Regulatory Board (PNGRB) has directed city gas distribution companies to expedite the conversion of households to domestic PNG and prioritise consumers in areas where pipeline infrastructure has already been laid.
According to the regulator, India’s total natural gas consumption currently stands at around 189 million metric standard cubic metres per day (mmscmd), of which about 97.5 mmscmd is produced domestically.
