LPG to PNG switch: India orders LPG supply to stop where piped gas is available

Households with piped natural gas access must shift from LPG within three months. LPG supply will stop if consumers do not move to PNG. The Ministry of Petroleum and Natural Gas set the rule under a new 2026 order. The step comes as India faces an LPG shortage linked to the war in West Asia.

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The policy aims to move LPG cylinders away from places that already have pipelines. Officials said this will help areas without gas networks get more LPG. The government also wants less dependence on a single fuel. It is promoting PNG, which arrives through pipelines and needs no refill booking.

LPG to PNG switch rule under Natural Gas Order 2026

The ministry notified the Natural Gas and Petroleum Products Distribution Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities Order, 2026. The order was issued on March 24. It is meant to speed up pipeline work and support a shift from LPG to PNG. It also seeks to strengthen energy security through wider supply options.

The order says an authorised gas retailer will alert LPG users where PNG exists. Sujata Sharma, Joint Secretary, said license holders in each geographical area GA will send notices. Such users must shift within three months, Sujata Sharma said. If the switch does not happen, LPG supply will be stopped under the order’s provisions.

The text sets out what happens when households ignore the notice. It said, "The LPG supply to such an address shall cease after three months from the date of the communication.\" It also covers cases where access to a housing complex blocks a pipeline route. In such cases, the notice period still applies before LPG supply is cut.

Pipeline approvals and timelines in Natural Gas Order 2026

The order was issued under the Essential Commodities Act. It seeks quicker permissions for pipeline laying and related facilities. Public authorities must give right of way within set timelines. If deadlines are missed, permission will be treated as granted. Authorities also cannot levy charges beyond the notified rates.

For housing areas, the order sets short deadlines for permissions and connections. Entities controlling entry or common areas must give approval within three working days. Last-mile PNG connectivity must be provided within 48 hours. The order says applications for pipeline connectivity in such housing areas cannot be rejected.

Disputes over land access will go to designated officers under the order. These officers get powers similar to a civil court. They can intervene to resolve right of way issues and allow access when needed. The framework is designed to keep pipeline expansion moving, even when permissions are contested.

Implementation oversight and LPG supply impact in Natural Gas Order 2026

Authorised entities must start pipeline laying within four months of approval. Penalties can apply if work does not begin on time. The order also mentions possible loss of exclusivity for non-compliance. The Petroleum and Natural Gas Regulatory Board PNGRB will act as the nodal agency and track approvals, rejections, and compliance.

The order links LPG curbs to cases where access is blocked in housing complexes. It states, \"In case the right of way or right of use permission to lay pipeline to residences for supply of PNG is not granted by the entities that control access to the housing complex, a notice will be issued and three months thereafter oil marketing companies will stop supply of LPG.\"

The government allowed exceptions where PNG cannot be provided. It said, \"The supply of LPG to a household shall not cease, if the authorised entity issues a no-objection certificate NOC on the ground that it is technically infeasible to provide a piped natural gas connection or gas supply to such household,\" it said. The authorised entity must record reasons, and withdraw the NOC once supply becomes possible.

Officials linked the move to global disruptions affecting gas and LPG flows. The order refers to supply risks including damage to liquefaction facilities in the Gulf. It also notes the continued blockage of the Strait of Hormuz. The government said shifting demand to PNG can reduce pressure on LPG availability during such disruptions.

Oil Secretary Neeraj Mittal commented on X about the policy direction. Neeraj Mittal said a crisis has been turned into an opportunity through the ease of doing business reforms. The ministry said the same reforms aim to speed up approvals and standardise charges. The wider goal is quicker gas network growth and better fuel availability management.

With inputs from PTI