India Restricts Piped Natural Gas (PNG) Users from Purchasing LPG Cylinders

The Indian government has enacted an immediate prohibition on the purchase of liquefied petroleum gas (LPG) cylinders for consumers already using piped natural gas (PNG), as per Reuters report.  

This decision aims to address the reduced LPG supplies resulting from geopolitical disturbances affecting Middle Eastern exports. 

Government Directive on LPG Cylinder Restrictions 

An official order dated May 25, 2026, announced the restriction for piped natural gas users on procuring LPG cylinders.  

The measure seeks to mitigate constraints resulting from supply chain disruptions caused by the closure of the Strait of Hormuz.  

This affected LPG imports from key suppliers in the Middle East, a region that fulfills around 90% of India's LPG import requirements. 

Impact of Strait of Hormuz Closure 

The strategic Strait of Hormuz has witnessed closures due to the ongoing U.S.-Israeli conflict with Iran, affecting maritime traffic.  

As a result, industries reliant on LPG have experienced supply reductions, prompting the government to advocate the adoption of piped natural gas as an alternative fuel source. 

Encouragement of Piped Natural Gas Usage 

With New Delhi promoting piped natural gas, this infrastructure is gaining traction as a reliable alternative.  

The government aims to streamline the energy consumption patterns of consumers by transitioning from LPG to piped natural gas, reducing dependency on imported resources. 

Read More: India-Russia Energy Ties Deepen with Focus on Gas, Nuclear and Petrochemicals! 

Consumption and Import Dependencies in India 

In 2025, India's consumption of LPG stood at 33.15 million metric tons, with imports accounting for approximately 60% of the demand.  

The reliance on the Middle Eastern imports underscores the nation's vulnerability to geopolitical tensions, prompting strategic shifts in energy policies. 

Conclusion 

The restriction on LPG cylinder acquisitions for piped natural gas users is a direct response to current challenges in securing consistent LPG supplies. By encouraging the use of piped natural gas, the Indian government aims to diversify energy sources and enhance domestic energy security. 

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