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LPG to PNG Shift: The government's new scheme aims to reduce reliance on LPG cylinders and expand the piped gas network, ensuring that clean, affordable, and safe fuel reaches every household.

Government's New Scheme: The government has approved a new incentive scheme to accelerate the expansion of domestic Piped Natural Gas (PNG) connections. The objective is to supply clean, affordable cooking fuel to as many households as possible across the country. Known as the 'Incentive Scheme for Promotion of Domestic PNG Connections,' this initiative comes into effect on September 1, 2026.

Currently, there are approximately 1.74 crore domestic PNG connections in India. Under this new initiative, City Gas Distribution (CGD) companies will be encouraged to convert existing non-billed connections into active, billed connections and to expand their PNG networks. Here is how the government's scheme will work.

Gas allocation at lower rates

To promote domestic PNG connections, CGD companies will receive an additional 200 Standard Cubic Meters (SCM) of cheaper domestically produced (APM) gas for every new active and billed domestic PNG connection, up to a specified limit, under the APM/NAPM incentive scheme. Companies will be able to use this cheaper gas instead of expensive imported gas (LNG), thereby reducing their costs.

According to the government, this scheme could reduce the payback period for capital expenditure on domestic PNG connections from approximately 10 years to about three years. This will provide CGD companies with a stronger incentive to expand their networks and activate connections in more households. The scheme will be implemented in two phases over six months.

How will customers benefit from this? With reduced costs, companies will lower the initial installation charges or security deposits levied on consumers and work towards immediately activating connections that were previously left dormant after the piping was installed. PNG supplies gas directly to homes via pipelines, offering an alternative to traditional cooking fuels. Unlike LPG, customers do not need to book, store, or replace cylinders; instead, they are billed based on actual consumption measured by their meters.