The central government has taken a big decision regarding gas supply to homes. The government has clearly said that it has access to homes in areas where PNG connection is available. It is mandatory for people there to take PNG connection. Otherwise the supply of LPG to those houses will be stopped within 3 months. The purpose of this order is to accelerate the expansion of the gas network and reduce dependence on a single fuel.
India is facing LPG shortage due to disruption in supply from major sources due to the war in West Asia, so the government is encouraging households and commercial users to switch to piped natural gas. PNG is supplied continuously through pipelines directly to the kitchen burner, eliminating the need to book refills.
The Ministry of Petroleum and Natural Gas has issued ‘Natural Gas and Petroleum Products Distribution Order, 2026’. Its objective is to accelerate the expansion of pipeline infrastructure, simplify the approval process and promote the transition from LPG to PNG to strengthen energy security.
What is the purpose?
The move is aimed at freeing up LPG supply from areas where pipeline connectivity is available and diverting it to areas where such infrastructure is lacking. It also aims to promote “diversification of fuel sources” amid global supply disruptions such as damage to liquefaction facilities in the Gulf region and the ongoing blockade in the Strait of Hormuz. Commenting on the order, Oil Secretary Neeraj Mittal said in his post that through the reforms related to ‘Ease of Doing Business’, “a crisis has been converted into an opportunity.” The order, issued under the Essential Commodities Act, aims to accelerate the expansion of pipeline infrastructure by simplifying the approval process, standardizing tariffs and ensuring permissions within the time limit.
To speed up the process, public authorities have to grant ‘right of way’ or permissions within a stipulated time frame. If they fail to do so, it will be deemed that approval has been granted. The order also prohibits officials from charging more than the prescribed charges. Bodies controlling access to residential areas must provide permissions within three working days and PNG’s ‘last-mile connectivity’ must be made available within 48 hours. Applications for pipeline connectivity in such areas cannot be rejected. This order further provides that certain officers will be given civil court-like powers to resolve disputes related to access to land and to grant ‘right of way’ where necessary.
Supply will be cut off in 3 months
If the entities managing a housing complex do not grant ‘right of way’ or permission to use the pipeline to deliver PNG to the houses, a notice will be sent to them. After three months of this notice, oil marketing companies will stop the supply of LPG at that place. The order also details the “consequences” that would arise if a household does not apply for or obtain a PNG connection despite notice from the authorized entity that has laid the pipeline for gas supply in that area. The order states, “The supply of LPG to such addresses will be completely stopped after three months from the date of receipt of the notice.” The order also clarifies, “LPG supply to any household shall not be stopped unless the authorized entity issues a ‘No-Objection Certificate’ (NOC) stating that due to technical reasons it is not possible to deliver gas to that household through the pipeline. The authorized entity shall maintain a record of the reasons for such technical constraints or impossibility. As soon as it becomes possible for that entity to deliver gas to those households through the pipeline and commission it, it shall issue its Will withdraw NOC.