Govt bars households with piped gas from obtaining, refilling LPG; asks them to give up LPG connections

The Union Ministry of Petroleum and Natural Gas has asked households with Piped Natural Gas (PNG) connections to immediately surrender their domestic Liquefied Petroleum Gas (LPG) connections. These households are also barred from obtaining cylinder refills or new LPG connections. 

This amendment to the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order aims to optimise domestic LPG availability amid ongoing supply disruptions caused by conflict in West Asia.

The government clarified that no person with a PNG connection should retain a domestic LPG connection or take refills of domestic LPG cylinders from any government oil company or their distributors. Such persons are required to surrender their domestic LPG connection immediately, as stated in the official notification.

LPG CONSTRAINTS 

This policy follows a recent 7 per cent increase in LPG prices, raising rates to Rs 913 for a standard 14.2-kilogram cylinder. The price hike is intended to manage demand as India faces challenges linked to disruptions in international shipping lanes.

India is the world’s second-largest consumer of LPG and imports about 90 per cent of its needs. Shipments for the week starting March 9 are estimated at 270,000 tonnes, the lowest since April 2023, according to Kpler data.

The closure of the Strait of Hormuz, following US and Israeli actions in Iran, has sharply limited flows from West Asia, which supplies most of India’s LPG imports. Iran recently allowed two Indian-flagged LPG carriers to transit the Strait, providing some relief.

Iran’s Ambassador to India, Mohammad Fathali, said, “Yes, we have allowed some ships to pass through Hormuz, but we can’t tell how many at this moment. Iran and India have historical relations and common interests,” and emphasised that both countries are “supporting each other.”

Oil Minister Hardeep Puri told Parliament that the government is seeking additional LPG cargoes from the US, Norway, Canada, Algeria and Russia, and is in talks with Iran for safe passage of vessels. Domestic refiners have been ordered to maximise output, resulting in a 28 per cent increase in local LPG production.