Govt Orders LPG Cut for Households Not Opting for PNG Where Available

In a major push towards a gas-based economy, the Centre has mandated that LPG supply to households will be discontinued within three months if consumers fail to switch to piped natural gas (PNG) in areas where such connectivity exists.

The directive, issued under the Natural Gas and Petroleum Products Distribution Order, 2026 , comes amid global supply disruptions due to the West Asia crisis, prompting the government to accelerate domestic gas infrastructure and reduce dependence on LPG imports.

Officials said PNG infrastructure is already well-developed in several urban clusters, particularly in Telangana and Andhra Pradesh , making them key regions for early transition. In Hyderabad and surrounding urban areas, city gas distribution networks have expanded significantly, with PNG increasingly being supplied to households, commercial establishments and industries. The recent LPG stress in Hyderabad’s commercial sector has further highlighted the urgency of shifting to piped gas.

Similarly, Andhra Pradesh has emerged as a strong base for PNG expansion, supported by its natural gas reserves in the Krishna-Godavari basin . The state has already seen operational PNG supply in cities like Tirupati , while infrastructure is being expanded across Nellore, Chittoor, Anantapur and Kadapa districts.

Several projects are underway or planned to strengthen PNG reach in the two states. Large-scale City Gas Distribution (CGD) projects are being implemented across both Telangana and Andhra Pradesh, with completion targets extending up to 2030. Dedicated pipeline proposals and industrial gas corridors are being developed to expand supply networks deeper into residential and industrial zones. Private players are also rapidly expanding infrastructure, including domestic PNG connections, CNG stations and industrial gas systems across multiple districts.

Under the new order, households that do not opt for PNG despite availability will lose LPG supply after a three-month notice period. However, exemptions will be granted where pipeline connectivity is technically infeasible, subject to certification by authorised entities.

The policy aims to free up LPG cylinders in cities with pipeline access and redirect them to rural and underserved regions, ensuring better distribution equity. To accelerate PNG expansion nationwide, the government has introduced reforms including time-bound approvals, deemed clearances, mandatory right-of-way permissions and 48-hour last-mile connectivity targets, along with penalties for delays in project execution.

The Petroleum and Natural Gas Regulatory Board (PNGRB) will monitor implementation and ensure compliance. The move is part of a broader strategy to safeguard India’s energy supply as geopolitical tensions disrupt fuel imports, with PNG expansion being prioritised as a long-term solution.

Experts say the policy signals a structural transition, with states like Telangana and Andhra Pradesh playing a critical role due to their growing pipeline infrastructure and domestic gas linkages.