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The government has put more than 41 lakh households on its immediate LPG-to-PNG conversion radar, but the switch to piped gas remains slow, with only about 20% of eligible consumers applying so far despite an intensive outreach drive triggered by supply disruptions during the West Asia conflict.
Of the 21.7 lakh LPG consumers identified as having access to a PNG network and eligible to switch, only 4.4 lakh have applied, while connections of 3.3 lakh consumers, or about 15%, have been activated. These consumers are spread across more than 72,000 housing societies in 311 geographical areas where PNG networks are available through oil companies and public and private city gas distribution entities.
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The wider conversion pool also includes around 20 lakh consumers who have already registered for PNG connections, taking the immediate target base to more than 41 lakh households. The petroleum ministry has asked CGD companies to speed up last-mile connectivity, particularly for registered consumers in areas where pipeline infrastructure is already available.
The low conversion has persisted despite a large outreach campaign. More than 21 lakh households were sent WhatsApp messages, around eight lakh received physical notices, and over 33,000 camps were organised to encourage the shift. Yet, in the last five months, only a little over 1.4 lakh households surrendered their LPG connections.
West Asia Conflict
The push intensified during March and April when the West Asia conflict disrupted supplies through the Strait of Hormuz and tightened LPG availability. India consumed around 33 million tonnes of LPG in 2025-26, of which only about 13 MT was produced domestically, with the balance met through imports, largely from West Asia.
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In March, the petroleum ministry ordered faster pipeline infrastructure creation, easier approvals and a stronger LPG-to-PNG shift to improve energy security. CGD and oil companies were also asked to contact LPG consumers with access to PNG networks and encourage them to switch within three months.
According to the latest Petroleum and Natural Gas Regulatory Board data, India had achieved 1.74 crore domestic PNG connections till June against a pro-rata target of 4.41 crore, translating into 39% achievement. Around 1.50 lakh connections were added during June.
The top three geographical areas accounted for around 20% of total additions during the month. NCT of Delhi, authorised to Indraprastha Gas, recorded the highest additions, followed by Ahmedabad City and Daskroi Area, operated by Adani Total Gas, and Vadodara, operated by Vadodara Gas.
The conversion drive has also assumed greater significance because of the widening gap between LPG supply costs and retail prices. The cost of supplying a 14.2-kg domestic LPG cylinder crossed ₹1,600 in June 2026, while PSU oil marketing companies charged ₹942 per cylinder from general consumers and an effective ₹642 from PM Ujjwala beneficiaries.
Cumulative under-recoveries of PSU OMCs from supplying domestic LPG below cost rose to more than ₹59,000 crore by end-July, from over ₹51,000 crore at end-June. The ₹942 retail price in Delhi carried an implicit under-recovery of over ₹700 per cylinder in June, around ₹500 in July, before easing to ₹188 in August.
Incentives and Administrative Push
The ministry is also planning a de-duplication exercise to identify consumers holding both LPG and PNG connections. Petroleum Secretary Neeraj Mittal has written to state and Union Territory chief secretaries seeking district-level administrative support and nodal officers to coordinate the expansion.
From September 1, eligible CGD entities will also receive an additional 200 standard cubic metres of lower-priced domestic APM gas for every incremental billed domestic PNG connection achieved above the prescribed threshold for the geographical area, as the government seeks to accelerate activations and reduce dependence on LPG.
TOPICSLPGThis article was first uploaded on August twenty-nine, twenty twenty-six, at forty-two minutes past twelve in the am. © The Indian Express (P) Ltd