The Centre on Wednesday announced a fresh push to ease the ongoing LPG shortage, linking higher commercial gas supply to faster rollout of piped natural gas (PNG) networks across states.
The move comes as supply disruptions stretch into the third week, largely due to the West Asia conflict that has impacted India’s access to nearly 60 per cent of its LPG imports. To manage the situation, the government has prioritised household consumption, while commercial users such as hotels initially faced sharp cuts before partial restoration.
Govt links LPG supply to PNG rollout
Under the new plan, states that speed up approvals for city gas distribution (CGD) projects will receive higher commercial LPG allocations. The Centre has indicated that supply to commercial users could be raised to 30 per cent in such states.
Briefing reporters, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said that while LPG supplies are constrained, piped natural gas (PNG) supplies to households and industries continue unabated.
“LPG users should shift to PNG wherever there is a city gas distribution (CGD) network nearby,” she said, adding that her ministry has written to states, offering 10 per cent more commercial LPG if they grant deemed permissions to all old applications, and the same after 24 hours of new application for laying pipelines, cut annual rental/lease charges and allow dig and restore schemes.
“Onus is on states and UTs to take this reform forward and expedite approvals,” she said.
Supplies tight, but no ‘dry out’ reported
Officials maintained that while the situation remains under pressure, there has been no complete depletion of LPG stocks anywhere in the country.
“Situation, however, continues to be worrisome” primarily because the imports have been blocked, she said.
Online booking of cylinders has risen to 93 per cent, though queues at distributor points continue in several areas.
“LPG consumers are requested to wait after doing online booking. Cylinders will be delivered to their homes,” she said. “There is no need for panic booking or going to LPG distributors.”
To ease demand, the government is actively promoting a shift to PNG, with city gas companies offering quicker connections and incentives. States have also been urged to simplify approvals and reduce charges for pipeline projects.
Oil Secretary Neeraj Mittal has written to states, flagging high right-of-use charges and lease rentals as key hurdles slowing CGD expansion. He noted that easing these costs could improve investment and help scale up gas access faster.
The Centre has outlined a graded incentive system. States implementing reforms such as faster approvals, reduced charges, and dig-and-restore policies will receive incremental LPG allocations.
Meanwhile, the shortage has started affecting multiple sectors. Restaurants are trimming menus, while industries like ceramics, brick kilns, and glass units face operational challenges. Essential services such as hospital kitchens, laundries, and crematories are also under strain.
To support states, the government has supplied additional kerosene and allowed local authorities to prioritise LPG distribution. Despite the stress in cooking fuel supply, officials said petrol, diesel, and aviation turbine fuel stocks remain stable, with no disruptions reported.