Business

Centre pushes LPG-to-PNG switch, asks states to appoint district nodal officers

Petroleum Ministry seeks local administrative support to accelerate household PNG connections as new rules bar consumers from retaining both LPG and piped gas connections

The Centre has asked states and Union Territories to step up the transition of households from LPG cylinders to piped natural gas (PNG), seeking the appointment of district-level nodal officers to coordinate with city gas distributors and oil marketing companies.

In a letter to state chief secretaries, Petroleum Secretary Neeraj Mittal said faster adoption of PNG would support India's energy transition, reduce the logistical burden of transporting LPG cylinders and make better use of city gas distribution infrastructure created through substantial public and private investment. The intervention assumes greater significance following disruptions to India's LPG supply chain during the West Asia crisis earlier this year, which exposed the country's dependence on imported cooking gas and strengthened the case for expanding piped supplies to households.

Districts brought into transition

The Petroleum Ministry wants each state and UT to nominate a district-level nodal officer, not below the rank of district supply officer, who will work with the PNG Coordination Committee (PCC) operating in the area.

Officials from food and civil supplies departments have been identified as the preferred choice because they already deal with LPG distributors and have an established administrative presence at the local level.

District administrations will be expected to help city gas distribution companies secure right of way or right of use from resident welfare associations and housing societies, coordinate the transition between LPG distributors and PNG suppliers and assist with consumer verification and awareness campaigns.

They will also be responsible for helping resolve consumer grievances and monitoring the pace at which households switch to PNG in notified areas. Where access to non-public premises is refused, designated officials could also exercise powers available under the applicable control orders. The ministry said experience from the PCC mechanism showed that cooperation from district administrations was essential to complete the transition within stipulated timelines.

No dual LPG-PNG connections

The push is backed by a new regulatory framework that seeks to prevent households in areas with PNG availability from simultaneously retaining LPG and piped-gas connections.

The government has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Orders of 2026 along with LPG Control Orders under Section 3 of the Essential Commodities Act, 1955.

Under the framework, households cannot retain both connections where piped gas is available. LPG supplies can also be discontinued if an eligible household fails to apply for a PNG connection despite receiving due notice.

Authorised city gas distribution entities and public-sector oil marketing companies have been directed to establish a PNG Coordination Committee in every geographical area.

These committees are tasked with identifying eligible households and housing societies, issuing statutory notices to residents, RWAs and individual consumers, and organising outreach camps to facilitate new connections.

States and UTs have now been asked to provide the names, designations and contact details of their nominated nodal officers at the earliest so that local PCCs can coordinate with them.

West Asia crisis adds urgency

The policy push follows the supply disruption witnessed during the West Asia conflict earlier this year.

India imports a substantial proportion of its LPG requirements, with Qatar, Saudi Arabia, the UAE and Kuwait among its important suppliers. Much of this trade depends on shipping routes passing through the strategically sensitive Strait of Hormuz.

When supplies were disrupted, the government was forced to prioritise domestic LPG requirements. Commercial and industrial consumers initially faced restrictions before supplies were progressively restored.

India has subsequently sought to diversify its sourcing, including by increasing purchases from the United States and Algeria, to reduce its exposure to disruptions affecting Middle Eastern suppliers.

Domestic household PNG proved comparatively resilient during the same period.

Supplies to domestic PNG consumers received priority allocation of domestically produced natural gas, helping insulate households from much of the disruption affecting imported LPG and liquefied natural gas cargoes.

Industrial and commercial gas consumers with greater exposure to imported LNG faced more vulnerability, while domestic PNG and compressed natural gas supplies remained comparatively protected.

City gas network gets bigger role

The experience has reinforced the government's argument for shifting more household cooking demand towards piped natural gas as part of a broader effort to improve India's energy security.

Unlike LPG cylinders, PNG is supplied directly to homes through city gas networks, eliminating repeated cylinder transportation and delivery. Greater household adoption would also improve utilisation of pipelines and other infrastructure developed by city gas companies.

The Centre views PNG as a cleaner and more efficient cooking fuel that can simultaneously improve consumer convenience and reduce pressure on the LPG distribution system.

However, expansion has often faced practical hurdles at the local level, including permissions from housing societies, access to private premises, right-of-way issues and reluctance among consumers to surrender existing LPG connections.

By formally bringing district administrations into the process, the ministry is seeking to overcome those obstacles and accelerate connections in areas where gas infrastructure is already available.

The states have been asked to accord priority to the exercise, with the Centre seeking a time-bound increase in PNG adoption as India's city gas distribution network continues to expand.