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PNG Mandatory as Govt Phases Out LPG Supply

  • By Thetripurapost Desk, New Delhi
  • Mar 25, 2026
  • 633

In a significant policy shift, the Union government has mandated the adoption of Piped Natural Gas (PNG) in areas where gas pipelines are available. Under the newly notified Natural Gas and Petroleum Products Distribution Order, 2026, households located near operational pipelines must obtain a PNG connection, failing which their LPG cylinder supply will be discontinued within 90 days of receiving official notice.

The move comes amid concerns over global gas shortages triggered by ongoing geopolitical tensions in the Middle East, with the government aiming to ensure uninterrupted fuel access and streamline distribution.

Mandatory PNG Adoption and LPG Phase-Out

Once a pipeline becomes accessible to a residence, authorities will issue a formal notice. If the household does not secure a PNG connection within three months, LPG supply to that address will be terminated. The regulation applies to the property itself, irrespective of whether the occupant is the owner or a tenant.

Strict Timelines for Societies and Authorities

To eliminate delays, housing societies and Resident Welfare Associations (RWAs) are now required to approve pipeline installation requests within three days. Any refusal or delay could result in suspension of LPG supply across the entire society.

Similarly, government departments must grant approvals within fixed timelines—10 days for smaller networks and 60 days for major pipeline projects. Failure to respond within these periods will lead to “deemed clearance,” allowing companies to proceed automatically.

Compensation Framework for Landowners

The government has also streamlined compensation for private land used in pipeline projects. Landowners will receive 30% of the land’s commercial circle rate. If consent is granted within 24 hours, compensation will be doubled to 60%. In case of disputes, a designated authority will intervene to expedite decisions.

Policy Rationale: Efficiency and Security

Framed under the Essential Commodities Act, the policy seeks to reduce dependence on LPG cylinders, ensuring consistent supply even during crises. PNG users will no longer be eligible for LPG refills or new connections.

While PNG offers cost efficiency and eliminates the need for cylinder bookings, it also restricts user flexibility, effectively phasing out dual usage.

Implications for Tenants

Tenants are eligible to apply for PNG connections either through the landlord or independently, subject to documentation such as a rent agreement and a No Objection Certificate (NOC). Existing LPG connections must be surrendered upon activation of PNG.

Key Clarifications

  • LPG cylinders need not be returned immediately; a 90-day notice period will be provided.
  • PNG is generally more economical and safer, with usage-based billing.
  • LPG supply will continue in areas where pipeline connectivity is not technically feasible.

Overall, the policy marks a decisive transition toward a pipeline-based gas distribution system, with compliance becoming mandatory wherever infrastructure permits.