India Restricts LPG Access for PNG Household Users

Synopsis:  India has barred households with piped natural gas connections from purchasing or refilling LPG cylinders as the government seeks to manage fuel shortages caused by disruptions in global energy supplies.

India has prohibited households with piped natural gas (PNG) connections from purchasing or refilling domestic liquefied petroleum gas (LPG) cylinders with immediate effect, according to a government order issued by the Ministry of Petroleum and Natural Gas. The move comes as the country faces mounting pressure on LPG supplies due to disruptions in imports linked to the ongoing conflict in West Asia and restrictions affecting shipping through the Strait of Hormuz.

Under the revised supply order, oil marketing companies are no longer permitted to issue new LPG connections or provide cylinder refills to consumers who already have access to PNG infrastructure. The government states that the measure is intended to optimise fuel distribution and prioritise LPG availability for households and regions where piped gas networks are not available.

Also read: Goyal Canada Visit Aims to Fast-Track CEPA Talks

India remains one of the world’s largest LPG consumers and relies heavily on imports to meet domestic demand. Approximately 60% of the country’s LPG consumption is met through imports, with a substantial share sourced from Middle Eastern suppliers. The recent geopolitical tensions involving Iran, Israel, and the United States have significantly disrupted maritime trade routes, particularly through the Strait of Hormuz, a critical global energy corridor.

The supply disruption has already affected several industries and urban centres across the country. Commercial establishments, including restaurants and small businesses, have reported delays in LPG deliveries and shortages of commercial cylinders in cities such as Mumbai, Bengaluru, Chennai, and Delhi. Some households in suburban regions are also experiencing prolonged delivery delays, prompting a shift toward alternative cooking methods such as induction stoves and electric appliances.

To address the crisis, the government has increased domestic LPG production, sought additional imports from alternative suppliers including the United States, Canada, Russia, Norway, and Algeria, and encouraged consumers to transition to PNG wherever infrastructure is available. Authorities believe the latest restriction will help conserve LPG stocks and improve supply management during the ongoing energy disruption.