Centre Bars Consumers with Piped Natural Gas from Holding Domestic LPG Connections

The Ministry of Petroleum and Natural Gas has issued a notification prohibiting individuals who already have a Piped Natural Gas (PNG) connection from retaining or refilling a domestic Liquefied Petroleum Gas (LPG) cylinder connection. The new rule aims to streamline domestic fuel distribution and prevent duplication of subsidised cooking fuel connections.

Notification Issued Under Essential Commodities Law

The notification dated 14 March 2026 has been issued under Section 3 of the Essential Commodities Act, 1955, which empowers the central government to regulate the production, supply and distribution of essential commodities in the public interest.

Through this order, the government has amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000.

According to the amendment, any person who already has a Piped Natural Gas (PNG) connection and also holds a domestic LPG connection will no longer be allowed to retain that LPG connection or obtain cylinder refills from government oil companies or their distributors.

Mandatory Surrender of LPG Connection

The notification explicitly states that such consumers must immediately surrender their domestic LPG connection. It further clarifies that individuals with a PNG connection cannot apply for or obtain a new LPG connection from any government oil marketing company.

The amendment also introduces a new entry under the schedule relating to “Prohibited Activities for Government Oil Companies.” Under this provision, oil companies are barred from providing domestic LPG connections or supplying LPG cylinder refills to consumers who already possess a PNG connection.

Objective: Prevent Duplication of Cooking Fuel Supply

The move appears to be aimed at preventing duplication of cooking fuel connections and ensuring that LPG cylinders are available for households that do not have access to piped gas infrastructure.

In several urban areas across India, city gas distribution networks have expanded rapidly, providing households with PNG connections that supply natural gas directly through pipelines. Despite this, many households continue to maintain LPG cylinder connections as an alternative cooking fuel.

By restricting dual access, the government intends to optimize fuel distribution and reduce unnecessary demand for LPG cylinders, particularly those that are subsidised.

Immediate Implementation

The notification specifies that the amendment comes into force immediately upon its publication in the Official Gazette. This means the rule will apply to existing as well as future consumers.

Consumers who currently hold both PNG and LPG connections may now need to choose one of the two, with the policy clearly prioritizing PNG users to discontinue their LPG connections.