Government Restricts LPG Access for Piped Natural Gas Users Amid Supply Concerns

New Regulations on LPG Supply

On Saturday, the Union government announced a new regulation that prevents consumers with piped natural gas (PNG) connections from keeping, acquiring, or refilling domestic liquefied petroleum gas (LPG) cylinders, as per an updated supply order.

The Ministry of Petroleum and Natural Gas clarified that government oil companies are also prohibited from issuing LPG connections or refills to those who already possess PNG connections.

This decision comes in response to ongoing disruptions in LPG supplies across India, attributed to the conflict in West Asia.

Iran has effectively restricted access to the Strait of Hormuz for most international commercial vessels, a critical route through which approximately 20% of the world's petroleum supply flows.

India relies on imports for about 60% of its LPG needs, primarily sourced from Gulf nations. The supply issues have resulted in numerous restaurants temporarily closing and long lines forming outside LPG distribution centers.

On Friday, the government acknowledged that the LPG supply situation was concerning but reassured that no distributor had reported running out of stock.

According to Sujata Sharma, joint secretary in the Ministry of Petroleum and Natural Gas, "LPG is a concern for us since most of our imports transit through the Strait of Hormuz. However, we have not received reports of any shortages at our 25,000 distributors."

She urged the public to avoid panic buying and not to believe in rumors. Additionally, she encouraged consumers who can transition from LPG to piped natural gas to do so promptly.

Sharma noted that around 60 lakh households are eligible to make this switch.