Govt enforces LPG-PNG exclusivity; 43,000 users surrender LPG as dual connections come under scrutiny Energy Watch
Oil & Gas

Govt enforces LPG-PNG exclusivity; 43,000 users surrender LPG as dual connections come under scrutiny

The government has begun identifying households with both LPG and PNG connections after mandating surrender of LPG for PNG users

Shalini Sharma

New Delhi: The government has started identifying households that have both Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG) connections as it enforces a prohibition on dual ownership. The exercise follows a policy decision taken last month under which households with PNG connections have been barred from retaining or obtaining subsidised domestic LPG connections.

"Assessment is being done as to how many have dual connections," said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, at an inter-ministerial press briefing on developments in West Asia.

Order mandates surrender, blocks refills and fresh LPG access

The Ministry of Petroleum and Natural Gas, through a notification issued on March 14, amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, under the Essential Commodities Act. The amended order requires consumers who already have a PNG connection to surrender their domestic LPG connection.

It states, "No person having a piped natural gas (PNG) connection and also having a domestic LPG connection shall retain a domestic LPG connection, or take refills of domestic LPG cylinders from any Government oil company, or through their distributors. Such persons will be required to immediately surrender their domestic LPG connection." The order also bars such consumers from obtaining a domestic LPG connection.

In addition, government oil companies and their distributors have been prohibited from providing a domestic LPG connection or supplying LPG cylinder refills to any consumer who already owns a PNG connection.

43,000 users give up LPG; govt expects higher compliance

According to the government, more than 43,000 LPG consumers who also have PNG connections have surrendered their LPG connections so far. "This is a low number. We expect it to be more", Sharma said.

Decision linked to supply pressure and PNG rollout

The government said the decision to amend the order was taken with a view to accelerating PNG rollout and easing pressure on cooking gas supplies amid global energy supply disruptions. The move is aimed at prioritising LPG supplies for households that do not have access to piped gas.

High import dependence and West Asia disruptions affect supplies

India imports about 88 percent of its crude oil, 50 percent of its natural gas and 60 percent of its LPG requirements. Before the US-Israel strikes on Iran on February 28 and Tehran’s retaliation, more than half of India’s crude imports, about 30 percent of natural gas and 85-90 percent of LPG imports came from West Asian countries such as Saudi Arabia and the UAE.

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The conflict has led to a blockade of the Strait of Hormuz, a key transit route for energy supplies.

India has partly offset crude supply disruptions by sourcing oil from countries including Russia. However, gas supplies have been curtailed to industrial users and LPG availability to commercial establishments such as hotels and restaurants has been reduced.

The government has also stopped issuing fresh LPG connections in view of the availability crisis.

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