2 weeks ago
India Offers Gas Distributors Incentives to Expand Household PNG
India wants more families to cook with piped natural gas, or PNG, instead of LPG cylinders.
Starting September 1, 2026, eligible gas distribution companies will receive extra supplies of cheaper domestic gas when they add paying household PNG customers.
The reward applies only to new billed connections above a target set for each area.
It can help companies turn unused connections into active ones and build pipelines to more homes.
Companies may use the extra gas to reduce their need for more expensive gas in their vehicle-fueling business.
The government believes this could help companies recover their pipeline investment faster.
PNG arrives continuously through underground pipes, so families do not need to store or replace cylinders.
The government also describes PNG as cleaner and more convenient than several other cooking fuels.
Eligible city gas distributors will receive 200 standard cubic metres of cheaper domestic APM gas for each incremental billed household PNG connection above area-specific thresholds.
The scheme is scheduled to begin on September 1, 2026, and will operate in two six-month tranches.
The incentive is intended to activate unbilled connections and extend PNG pipeline networks into new areas.
Distributors can use the additional APM gas to replace some costlier LNG purchased for their CNG transport operations.
Government estimates indicate the incentive could reduce PNG connection investment payback periods from about 10 years to roughly three years.
- Who
- The Government of India and eligible city gas distribution companies.
- What
- An incentive scheme providing additional domestic APM gas for incremental billed household PNG connections.
- Where
- Across India, within the service areas of eligible city gas distributors.
- When
- The scheme is scheduled to begin on September 1, 2026, in two six-month tranches.
- Why
- To activate unused PNG connections, expand household pipeline networks, lower distributors’ gas-sourcing costs and encourage a shift from LPG to PNG.
Key facts
- Incentive
- 200 standard cubic metres of additional domestically produced APM gas for each eligible incremental billed household PNG connection.
- Eligibility threshold
- Connections must exceed the threshold set for the relevant geographical area.
- Start date
- September 1, 2026.
- Implementation
- Two six-month tranches.
- Expected payback period
- About three years, compared with roughly 10 years currently, according to the government.
- Existing domestic PNG connections
- Approximately 17.4 million, or 1.74 crore.
- Recent connection activity
- More than 500,000 PNG connections have been gasified and over 570,000 customers have registered for new connections since March, according to government data.
Sources
India’s New PNG Incentive Scheme Begins September 1, Here’s What Could Change For Household Cooking Gas Users
Govt approves incentive scheme for gas distributors to speed up household PNG connections
Govt to offer city gas distributers 200 scm extra gas to push household PNG switch
Govt to offer city gas distributers 200 scm extra gas to push household PNG switch
Related news
Centre Unveils Incentive Scheme to Expand Domestic Piped Gas
Gas Distributor Shares Rise as India Incentivizes PNG Connections
Centre Fast-Tracks LPG-to-PNG Switch for 4.1 Million Homes
Centre Asks States for Officers to Speed LPG-to-PNG Shift
Government Accelerates LPG-to-PNG Shift as West Asia Conflict Disrupts Supply
Additional APM Gas Incentive Favors CGD Companies, Analyst Says
Mumbai CNG Prices Rise Amid Middle East Crisis
India Races to Expand Piped Gas as Connections Run Dry
