LPG consumers soon can switch gas suppliers freely

Cooking gas consumers in India may soon have the option to switch their LPG supplier without changing their existing connection, offering greater flexibility and improved service, the Petroleum and Natural Gas Regulatory Board (PNGRB) announced on Saturday.

The regulator has invited comments from stakeholders, civil society organisations, distributors, and consumers on the proposed LPG Interoperability Framework. The initiative seeks to address operational constraints faced by local distributors, which often limit consumer choices and result in service disruptions.

“Consumers need to have the freedom to choose their LPG company or dealer, particularly when cylinder prices are uniform across suppliers,” PNGRB said in its notice inviting feedback.

The concept of LPG portability was first piloted in October 2013 by the then UPA government, covering 24 districts across 13 states, and expanded nationwide in January 2014 to 480 districts. Under the 2014 scheme, consumers could switch between dealers within the same oil marketing company (OMC) but were not allowed to change the company itself. For instance, an Indane Gas consumer under Indian Oil Corporation could select a dealer in their locality but could not migrate to Bharat Gas of Bharat Petroleum or HPGas of Hindustan Petroleum, as inter-company portability was legally not permitted.

The new framework proposed by PNGRB aims to allow inter-company portability. The regulator stated that it would enable consumers to access timely refills by being served from the nearest available distributor through enhanced coordination and flexible delivery arrangements, especially during service disruptions.

India currently has over 32 crore LPG connections, achieving near-universal household coverage as of FY25. Despite this, around 17 lakh consumer grievances are reported annually. While OMCs attempt to resolve these issues, consumers currently do not have the option to switch from one OMC or LPG dealer to another, PNGRB noted.

“Reports from various regions indicate cases of supply disruptions and prolonged delays in LPG deliveries, sometimes extending to several weeks. Such interruptions have caused hardship for households and commercial establishments, particularly where local distributors face operational constraints or suspensions,” the regulator added.

Under the 2014 LPG Connection Portability Scheme, OMCs created more than 1,400 clusters of distributors across over 480 districts, with an average of four distributors per cluster. Consumers in these markets could choose a distributor within their cluster, allowing limited intra-company portability.

PNGRB has invited comments on measures that could facilitate uninterrupted LPG supply and strengthen consumer trust. Following the consultation, the regulator will finalise rules and guidelines for nationwide rollout of LPG portability and announce an implementation date. The deadline for submission of comments is mid-October.

The move is expected to enhance competition among LPG suppliers, reduce service delays, and give consumers greater control over their choice of supplier.