Lok Sabha Question No. 6379 (UNSTARRED), answered on 2026-04-02
Subject: Policy on Piped Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Dr. Mallu Ravi

6379. Dr. Mallu Ravi:

## LOK SABHA UNSTARRED QUESTION NO. 6379 TO BE ANSWERED ON 2 nd  April, 2026

## Policy on Piped Natural Gas

## पेट Ō ोिलयम एवं Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Government has issued any directions for restricting or requiring surrender of LPG connections  for  households  having  Piped  Natural  Gas  (PNG)  connections,  if  so,  the details thereof;

(b) whether it is a fact that the country has about 33.37 crore domestic LPG consumers and around 1.5-1.6 crore households connected to PNG and that the Government is encouraging sixty lakh households located near PNG pipelines to shift from LPG to PNG and if so, the details thereof;

(c)  whether  the  Union  Government  is  aware  that  Telangana  has  about  1.3  crore  domestic LPG consumers and the supply of commercial LPG cylinders has reportedly declined from about 23,000 cylinders per day to around 6,200 cylinders per day affecting hotels and small businesses and if so, the details thereof;

(d) whether the Union Government has received any request from the State Government of Telangana for additional LPG allocation and if so, the details thereof; and

(e) the steps being taken to ensure adequate and uninterrupted supply of LPG and natural gas across the country, State/UT-wise including Telangana?

## ANSWER

## पेट Ō ोिलयम एवं Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a) to (e):

## LPG:

As on 01.03.2026,there are a total of 33.37 crore active Domestic LPG consumers of PSU OMCs in the country. India imports about 60 percent of its LPG consumption, out of which about 90 percent transits through the Strait of Hormuz. In view of the ongoing geopolitical developments  in  West  Asia,  the  availability  of  imported  LPG  in  the  country  has  been impacted. The Government has undertaken a series of proactive measures to ensure stability in LPG supplies.

In exercise of the powers conferred under Section 3 of the Essential Commodities Act, 1955, the Central Government has issued the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Amendment Order, 2026 to amend the Liquefied Petroleum Gas (Regulation of

Supply  and  Distribution)  Order,  2000.  The  Amendment  Order  introduces provisions  under Clause 3 prohibiting persons having a Piped Natural Gas (PNG) connection from retaining or availing  domestic  LPG  connections  or  refills  from  Government  Oil  Companies  or  their distributors  and  mandates  such  consumers  to  surrender  their  existing  LPG  connections.  It further restricts any person having a PNG connection from obtaining a new domestic LPG connection.

Further,  as  per  the  revised  Schedule-I  of  the  said  Order,  Government  Oil  Companies  are prohibited  from  providing  domestic LPG  connections  or supplying  LPG  cylinder refills  to consumers who already have a PNG connection.

While domestic LPG supplies have been prioritised, commercial LPG supplies were initially impacted.  Subsequently,  Government  restored  partial  supplies  of  20%  to  commercial consumers,  which  was  further  enhanced  to  an  overall  allocation  of  50%,  including  10% linked to PNG expansion reforms. This allocation has been prioritised for key sectors such as restaurants,  dhabas,  hotels,  industrial  canteens,  food  processing  and  dairy  units,  subsidised canteens  run  by  State  Governments  or  local  bodies,  community  kitchens,  and  5  kg  FTL cylinders for migrant labourers. From 14.03.2026 to 21.03.2026, approximately 15,440 MT of  commercial  LPG  has  been  uplifted  across  States  and  UTs.  Additionally,  educational institutions and hospitals continue to receive priority, accounting for around 50% of the total commercial  LPG  allocation.  Due  to  supply  prioritization  to  domestic  LPG,  all  states including Telangana have witnessed supply cuts.

In continuation of these measures, Government has further enhanced allocation of commercial LPG by an additional 20%, taking the total allocation to 70% of the pre-crisis level  (including  the  10%  reform-linked  component).  This  additional  allocation  is  being prioritised for labour-intensive and core industrial sectors, including steel, automobile, textile, dye, chemicals and plastics, with preference to process industries and those requiring LPG for specialised heating purposes where substitution with natural gas is not feasible.

Entities  seeking  allocation  under  this  additional  20%  are  required  to  comply  with  existing conditions relating to registration with OMCs and application for PNG connections to CGD entities, as stipulated earlier. However, in cases where LPG is required for specialised process use that cannot be substituted by natural gas, such requirements are being waived.

## Natural Gas:

As  on  31.01.2026,  there  are  1.62  crore  PNG  (Domestic)  connections  in  the  country. Providing  Piped  Natural  Gas  (PNG)  connections  is  part  of  the  development  of  City  Gas Distribution (CGD) Network, which is carried out by the entities authorized by the Petroleum and  Natural  Gas  Regulatory  Board  as  per  their  Minimum  Work  Programme  (MWP)  and techno-commercial feasibility. After completion of 12/12A CGD bidding round, PNGRB has authorized entities for the development of CGD network in 307 Geographical Areas (GAs), covering almost the entire mainland area of the country. The expansion and rollout of PNG (D) connections is a continuous process depending upon development of pipeline infrastructure and demand in the respective Gas.

Government  has  also  notified  the  Natural  Gas  (Supply  Regulation)  Order,  2026  dated 09.03.2026 under the Essential Commodities Act, 1955 to regulate the production, allocation and  distribution  of  natural  gas  including  LNG,  to  ensure  its  equitable  availability  across sectors. Under this framework, natural gas supplies are being prioritised for critical sectors such as domestic PNG, CNG for transport and LPG production, which are being maintained up to 100% of their average past sixmonth average gas consumption, subject to availability, thereby safeguarding household and essential requirements.

Government  of  India  vide  Gazette  dated  24.03.2026  has  notified  the  Natural  Gas  and Petroleum  Products  Distribution  (Through  Laying,  Building,  Operation  and  Expansion  of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order provides a streamlined and time-bound framework for laying and expanding pipelines across  the  country,  addressing  delays  in  approvals  and  access  to  land,  and  enabling  faster development  of  natural  gas  infrastructure,  including  in  residential  areas.  It  is  expected  to accelerate PNG network growth, enhance last-mile connectivity, and support the transition to cleaner fuels, thereby strengthening energy  security  and  advancing  India's  gas-based economy.

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