Why has the government shifted its focus from commercial LPG to PNG? Learn the real reason.

News Topical, Digital Desk : The disruption of shipping traffic in the Strait of Hormuz due to the ongoing war in the Middle East for the past month has severely impacted India's LPG imports. The country imports approximately 60% of its total LPG needs, of which more than 90% passes through this narrow waterway. This has stranded several cargo ships, impacting domestic and commercial gas availability.

The government has taken swift action to address this challenge. On Saturday, the Ministry of Petroleum and Natural Gas announced relief for commercial LPG consumers. According to the ministry, states and union territories will now receive up to 50% of their total allocation, with an additional 20% approved.

Hormuz crisis leaves stranded ships and rising demand

Since the war began, most shipping has been halted in the Strait of Hormuz. According to reports, several Indian LPG tankers are stranded there, leading to a significant reduction in imports. Efforts are underway to address the situation by increasing domestic production, but commercial sectors such as hotels, restaurants, restaurants, and canteens have been the hardest hit.

The government had previously limited commercial supplies, prioritizing domestic consumers, but efforts have now intensified to improve the situation. Alternative imports from the US are being increased, and some ships have successfully transited the Strait of Hormuz.
PNG is being emphasized with additional allocations.

The Ministry, through a letter dated March 21, 2026, approved an additional 20% allocation to states, bringing the total allocation to 50%. This includes the existing 10% allocation and a new additional 20% allocation.

PNG expansion accelerates

However, to reap the full benefits, states will need to accelerate the expansion of piped natural gas (PNG). In another letter issued on March 18, the government offered an additional 10%, contingent on the following reforms:

• 1% additional on formation of State/District Committees for approval of City Gas Distribution (CGD) applications and grievance redressal
• 2% extra on orders for issuance of CGD permissions
• 3% extra on undertaking excavation and restoration scheme
• 4% additional to reduce annual rent/lease charges.
• These steps will strengthen the PNG grid and reduce dependence on LPG in the long run
• Incentives and campaigns for PNG adoption

Government companies are campaigning to encourage commercial consumers in major cities to switch from LPG to PNG. Grid-connected consumers are being ensured supplies of up to 80% of their average consumption.

Special offer for PNG connection

GAIL offers up to ₹500 free gas for instant PNG connections, eliminating the hassle of refilling and ensuring safety. More than 13,700 new PNG connections have been issued in recent days, and over 7,300 consumers have switched from LPG. This has eased pressure on LPG demand.

The government has advised all central government establishments, colonies, and canteens to use PNG where available. City gas distribution agencies have been directed to prioritize commercial establishments such as restaurants, hotels, and canteens. The Petroleum and Natural Gas Regulatory Board (PNGRB) has also issued instructions to reduce the time between PNG connection application and supply.

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