Archive · 26 Aug 2026
Government Accelerates LPG-to-PNG Shift as West Asia Conflict Disrupts Supply
The government wants more homes to use piped natural gas instead of LPG cylinders.
It is doing this because the West Asia conflict is making LPG supplies harder to manage.
India depends heavily on the Middle East Gulf region for LPG.
Officials said about 21 lakh homes can switch immediately because PNG pipes are already available nearby.
Gas companies have been told to connect these homes quickly.
India had 1.74 crore household PNG connections by June, reaching 39% of its target.
LPG cylinders cost much more at market prices than consumers were paying.
This difference created large losses for state-owned oil companies.
The Oil Ministry is urging faster conversion of domestic LPG users to piped natural gas as the West Asia conflict strains supply chains.
About 21 lakh households with available PNG infrastructure can immediately shift to piped gas, the ministry said.
India had 1.74 crore domestic PNG connections by June, achieving 39% of the pro-rata target of 4.41 crore.
A 14.2-kilogram LPG cylinder cost ₹1,600 in June, while general consumers paid ₹942 and PM Ujjwala households paid ₹642.
PSU oil marketing companies’ LPG under-recoveries rose from over ₹51,000 crore in June to more than ₹59,000 crore in July 2026.
- Who
- The Oil Ministry, PSU oil marketing companies, and city gas distribution entities.
- What
- The government is accelerating the conversion of domestic LPG consumers to piped natural gas.
- When
- The review meeting was held before the article’s publication on August 26, 2026; the article cites June, July, and August 2026 data.
- Where
- India, including households connected to city gas distribution networks.
- Why
- The West Asia conflict is straining LPG supply chains, while India depends heavily on the Middle East Gulf region and subsidized LPG is causing large under-recoveries for PSU oil companies.
- Immediately eligible households
- Roughly 21 lakh households where PNG infrastructure is ready
- PNG connections by June 2026
- 1.74 crore domestic connections
- PNG target achievement
- 39% of the pro-rata target of 4.41 crore connections
- June LPG market price
- ₹1,600 for a 14.2-kilogram domestic cylinder
- Consumer LPG price
- ₹942 for general consumers and ₹642 for PM Ujjwala households
- PSU OMC under-recoveries
- More than ₹59,000 crore in July 2026, compared with over ₹51,000 crore in June
- PNG policy initiative
- PNGRB PNG National Drive 2.0 began in 2026