India’s PNG Expansion: 2.7 Lakh New Connections Added in March Amid LPG Supply Disruptions

India has accelerated the rollout of piped natural gas connections as part of a broader effort to ensure uninterrupted household fuel access.  

The expansion comes at a time when global supply disruptions have impacted traditional fuel availability, prompting a stronger push towards pipeline-based gas distribution. 

PNG Expansion and Connection Growth 

During March, more than 3.1 lakh piped natural gas connections were activated across domestic, commercial and institutional segments, including hostels, mess facilities, and canteens.  

In addition, 2.7 lakh new connections were issued during the same period and are currently in the process of being made operational.

The distinction between these figures is important. The 3.1 lakh connections represent earlier applications that were completed and supplied with gas in March, while the 2.7 lakh connections are newly registered users awaiting activation. 

As of the end of February, India had a substantial PNG base, including 1.64 crore domestic users, 48,568 commercial connections and 21,512 industrial connections.  

The government has extended its expansion drive until end-June and directed city gas distributors to accelerate installations, particularly for households, community kitchens, hostels and educational institutions. 

Supply Challenges and Government Measures 

The expansion is linked to disruptions in LPG supply following the closure of the Strait of Hormuz, a key route for India’s imports. The ongoing West Asia conflict has affected shipments, leading to supply constraints and increased reliance on alternative fuels. 

To manage the situation, authorities highlighted that nearly 50% of India’s natural gas requirement is met through domestic production, with the remaining sourced through diversified imports.  

Natural gas allocation has been prioritised for households and transport, with full supply ensured for PNG and CNG segments, while industrial users are receiving about 80% of their usual consumption. Additional LNG cargoes are also being procured to stabilise supply. 

Refineries across the country are operating at high capacity, with petrol and diesel stocks reported as adequate. To support domestic availability, excise duties on petrol and diesel have been reduced by ₹10 per litre each, while export duties have been imposed on diesel and aviation turbine fuel. 

LPG distribution continues without reported shortages, with daily deliveries exceeding 50 lakh cylinders in March. Commercial LPG supply has been restored to around 70% of pre-crisis levels, prioritising sectors such as hospitality and food processing. 

Market Stability and Enforcement Actions 

Fuel retail outlets remain operational across the country, although instances of panic buying have been observed in certain areas. 

The government has stated that supplies are sufficient and urged citizens to avoid hoarding. States have been asked to address misinformation through regular communication. 

Authorities have intensified enforcement efforts, conducting thousands of inspections and raids to curb hoarding and black marketing activities.  

Additional kerosene supplies have also been allocated as an alternative fuel source, alongside policy measures to accelerate pipeline infrastructure and expand city gas distribution networks. 

The government reiterated its focus on ensuring uninterrupted energy access for households and critical sectors such as healthcare and education, while encouraging responsible fuel usage and reliance on verified information sources. 

Read More: War Impact on E-commerce Supply Chains: Rising Input Costs and Delays! 

Conclusion 

India’s accelerated PNG expansion, combined with supply-side measures and policy interventions, reflects a coordinated approach to maintaining energy availability and supporting the transition towards cleaner fuel alternatives amid global disruptions. 

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