The Center is pushing LPG users to switch to piped gas at a time of supply tension

The Union Ministry of Petroleum and Natural Gas has asked states to expedite the migration of Liquefied Petroleum Gas (LPG) consumers to Pipeline Natural Gas (PNG) wherever infrastructure is available.

Citing insufficient recovery ₹Petroleum Minister Neeraj Mittal has urged states to direct district collectors and urban local bodies to encourage households to switch to PNG connections where available.

In a letter to chief secretaries of states and Union territories, Mittal said that despite notices issued to consumers with existing PNG connections to surrender their LPG cylinders, “field experience suggests that access restrictions, consumer reluctance and local issues have limited effectiveness”, slowing the pace of PNG roll-out.

The ministry said the active involvement of district and city governments will enhance ongoing efforts to expand the PNG network.

“Therefore, I request that directions be issued to District Collectors/District Magistrates/Commissioner/Special Officers of Urban Bodies to work with concerned State Level Coordinators/CGD Entities to encourage LPG consumers to fully migrate/PNG wherever possible,” the secretary said in a letter to the states.

On 25 May, the government banned households connected to PNG from filling up LPG cylinders with immediate effect as India tries to conserve cooking gas supplies amid conflict-related disruptions in West Asia. The Ministry of Petroleum Gazette states that consumers switching to PNG must give up their LPG connection within 30 days or obtain a conversion voucher to allow access in non-PNG locations in the future.

Earlier, in March, the government asked PNG consumers to give up LPG connections within three months.

Inquiries sent to the petroleum ministry on Wednesday evening were not immediately returned.

Under voltage

LPG supplies remain under pressure due to continued disruptions to energy flows from West Asia. On Sunday, the Oil Marketing Companies (OMCs) increased domestic LPG prices by Rs ₹29 per cylinder, the second increase since the West Asian conflict began on 28 February.

The government said the daily underutilization of petroleum products, including domestic LPG, is around ₹600-700 million. Under-recovery refers to the notional loss incurred by oil marketing companies when they sell fuel domestically below international prices.

At the same time, amid increased global LPG prices and supply constraints, the government reduced the number of cylinders provided to households under the Pradhan Mantri Ujjwala Yojana to four from nine earlier.

The secretary also noted, “You are advised that OMC is currently facing a loss ₹690 per LPG bottle, which translates into an annual loss of around ₹1.38 trillion. In addition, the government provides a ₹300 per cylinder subsidy to PMUY households, which represents an additional expenditure of approx ₹19,000 crore per annum. Therefore, there is an urgent need to use alternative fuels, including PNG, which is also cleaner and more user-friendly.”

Mint had earlier reported that the government has provided state OMCs with financial support of approx ₹1.23 trillion in losses during the first 78 days of the conflict in West Asia, including a cut in excise duty on gasoline and diesel to protect consumers from higher oil prices.