Govt Eases LPG Rules for PNG Users, Allows Future Restoration in Non-PNG Areas

Moneylife Digital Team 26 May 2026

Consumer Interest

The Union government has amended the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2026, allowing domestic LPG consumers who switch to piped natural gas (PNG) to either terminate their LPG connection or retain the option to restore it later if they move to areas without PNG infrastructure.

The amendment, notified on 25 May 2026 by the ministry of petroleum and natural gas (MoPNG), is aimed at providing greater flexibility and convenience to households increasingly adopting PNG connections in urban centres.

Under the revised provisions, consumers who obtain PNG connections can apply to terminate their LPG connections within 30 days of receiving the PNG supply. Alternatively, they can opt for a transfer voucher that would allow future restoration of the LPG connection in areas where PNG networks are unavailable.

According to the ministry, the move is intended to provide relief to consumers who may subsequently relocate to regions where piped gas infrastructure is either limited or unavailable.

‘The provision is particularly beneficial for transferable employees, migrant households, tenants, students and families shifting to non-PNG areas,’ the ministry said in a statement.

The amendment comes amid the government’s broader push to expand India’s piped gas infrastructure and reduce dependence on LPG cylinders in urban areas.

In March this year, the Union government notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026, under the Essential Commodities Act, 1955. The order significantly curtailed the powers of housing societies, resident welfare associations (RWAs), municipal bodies and local authorities to block or delay PNG pipeline installations.

The March notification was issued against the backdrop of disruptions to global LPG supplies triggered by the West Asia conflict, including damage to Gulf LNG facilities and continuing tensions in the Strait of Hormuz. The government positioned the pipeline expansion drive as both an energy security measure and a long-term fuel diversification strategy.

Industry observers say the latest LPG amendment complements the March pipeline reforms by addressing a practical concern for consumers hesitant to permanently surrender LPG connections after shifting to PNG. The new rules are expected to particularly help urban renters and professionals who frequently relocate between metro cities and smaller towns where PNG coverage remains uneven.

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