Amid ongoing tensions in Iran, concerns have risen over potential LPG supply disruptions in India. To safeguard domestic energy needs, the Centre has invoked the Essential Commodities Act, 1955, giving it authority to prioritise critical users. Under this directive, Priority Sector I—which includes household Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) for transport—is guaranteed 100% of its average consumption over the past six months.
This ensures that when gas is available in the national grid, household kitchen pipelines receive supply first, before industrial users like factories or power plants.
LPG vs Piped Gas
The key difference between Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG) lies in their composition and delivery method. LPG, a propane-butane mix from crude oil refining, is supplied in pressurised cylinders that require replacement. PNG, mainly methane, is delivered continuously through underground pipelines by city gas networks, eliminating the need for cylinders. Both remain part of India’s domestic cooking fuel network.
India is expanding its piped gas infrastructure under the Petroleum and Natural Gas Regulatory Board. According to PPAC data, India consumed around 31.3 million tonnes of LPG in FY2024–25. By late 2024, there were about 1.36 crore domestic PNG connections, compared with 33.2 crore LPG connections.
Impact on Piped Gas Users
Despite rising global tensions, gas distributors say household PNG supply is unlikely to be disrupted. In Madhya Pradesh, Manish Verma of Aavantika Gas Limited told Times of India that while procurement costs have increased, domestic supply will remain largely stable, prioritising cities like Indore, Gwalior, and Ujjain. Industrial users may face higher costs and tighter availability, but households remain the top priority.
The Ministry has tasked GAIL Gas Authority of India Limited with managing a “pooled price” system to ensure diverted gas remains affordable for priority sectors such as domestic kitchens.
