The Centre on Tuesday has called for more careful use of liquefied petroleum gas (LPG) and signalled a push to expand piped natural gas (PNG) infrastructure amid concerns over a potential supply crunch due to the ongoing conflict in West Asia.
Sujata Sharma, Joint Secretary (Marketing and Oil Refinery) at the Ministry of Petroleum and Natural Gas, addressing an inter-ministerial briefing, said domestic PNG and CNG consumers continue to receive full supply, while commercial LPG availability has been partly restored.
“The Government of India is making efforts, and it would be beneficial if all commercial LPG consumers shifted to PNG,” she said.
Concerns over LPG availability, particularly for commercial users, have increased due to global supply pressures and rising demand.
The government said diverting commercial users, such as hotels, restaurants, and catering services, to PNG could help ease pressure on household LPG supplies.
The government has maintained that domestic supply remains a priority, but indicated that managing demand in the commercial segment will be necessary to avoid disruptions.
Push to expand PNG network
Sharma said that the government is now encouraging wider adoption of PNG, particularly in urban areas where infrastructure is available. Consumers can apply for connections through email, customer portals, call centres or by contacting city gas distribution (CGD) companies.CGD firms have been asked to reach out to potential consumers, with several offering incentives to support the transition.
In a letter dated March 16, 2026, the Centre asked states and Union Territories to accelerate approvals for CGD projects. It called for deemed permissions for pending pipeline applications and for new proposals to be cleared within 24 hours.
States have also been urged to waive road restoration and permission charges, relax working hours and seasonal restrictions for pipeline work, and appoint nodal officers to improve coordination.
PNG supplied through pipelines offers a more stable alternative to LPG cylinders in areas with networks.
The government is expanding city gas distribution systems as part of a broader effort to improve fuel distribution and reduce reliance on LPG in the commercial segment.
