Government Rule Change Leads 6,000 PNG Users to Surrender LPG Connections Amid Iran Crisis

Amid rising geopolitical tension involving Iran, the Indian government has revised its regulations, requiring households with piped natural gas (PNG) connections to forfeit their subsidised domestic liquefied petroleum gas (LPG).  

As a result, 6,000 PNG users have surrendered their LPG connections to support households without piped gas access, stated Petroleum and Natural Gas Secretary Neeraj Mittal, as per news reports. 

Policy Shift in Response to Global Tensions 

The Ministry of Petroleum and Natural Gas, on March 14, 2026, amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, mandating PNG users to relinquish their LPG connections.  

This move aims to prioritise LPG access for households lacking PNG connections due to disruptions in global energy supply caused by escalating tensions in the Middle East. 

Accessibility and Supply Chain Adaptations 

India, which imports 88% of its crude oil, 50% of its natural gas, and 60% of its LPG requirements, has been affected by the blockade of the Strait of Hormuz.  

The blockade, a key transit route for Gulf energy exports, followed US-Israeli strikes on Iran. In response, India has sourced oil from other countries like Russia, although industrial users face curtailed gas supplies. 

Read More: Government Mandates PNG Adoption with New CGD Pipeline Framework! 

Efforts to Expand City Gas Networks 

The Indian government is expediting the development of city gas distribution networks to increase the adoption of PNG.  

In March 2026 alone, over 2,90,000 PNG connections have been added, with companies such as Indraprastha Gas and Mahanagar Gas offering incentives to boost PNG use. 

Current Supply Status and Measures 

Despite global disruptions, LPG deliveries remain stable with daily refill deliveries exceeding 55 lakh cylinders. Commercial LPG supply has been partially restored, prioritising vital sectors.  

To curb diversion, the government has increased kerosene allocations and taken measures against hoarding, seizing nearly 1,000 cylinders in recent interventions. 

Conclusion 

By revising its LPG regulations, the Indian government aims to mitigate the impact of geopolitical tensions on energy supply. This move emphasises prioritising and redistributing resources to ensure fair access to essential utilities amid ongoing disruptions. 

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