As the Middle East crisis continues to escalate, its impact is now being felt across Indian households and businesses such as eateries and restaurants, with the country relying on imports for 60% of its LPG needs. Amid rising concerns over LPG supply flows, the government is encouraging both households and commercial users to shift towards PNG.It has urged states to fast-track approvals and cut charges so that more homes can shift to piped natural gas (PNG) at a time when liquefied petroleum gas (LPG) supplies remain under stress. According to an official cited by ET, states have been asked to speed up permissions for laying pipelines and to do away with road restoration and related fees imposed by local authorities. The aim is to accelerate infrastructure rollout and make it easier for households to adopt PNG.
As part of the relief measures, the petroleum and natural gas regulatory board has waived imbalance charges for city gas companies, shippers and consumers “as a temporary relief measure in light of the extraordinary circumstances” due to ongoing Iran war. These charges are typically imposed when the actual quantity of gas taken or injected by a shipper differs from the amount scheduled on the pipeline network.Officials said the Centre is trying to overcome “structural constraints” that have slowed the growth of PNG connections. Sujata Sharma, joint secretary at the ministry of Petroleum and Natural Gas, outlined a series of steps proposed to states in a presentation shared on Monday.
Poll
Should the government provide further incentives for households to adopt PNG?
These include directing states to:
- Issuing deemed permission for pending applications for laying city gas distribution (CGD) pipelines
- Mandating approval of all new CGD permissions within 24 hours
- Waiving road restoration and permission charges levied by state or local authorities
- Relaxing working hours and working seasons
- Appointing state nodal officers for support, coordination and faster implementation
Meanwhile, the gap between LPG and PNG usage remains wide. India has around 10 million active PNG consumers, compared with about 330 million LPG users.Hospitality and consumers are already feeling the strain of LPG-related disruptions. The Hotel and Restaurant Association (Western India) (HRAWI) has approached the Maharashtra government seeking an extension or staggered payment of annual licence fees, saying a commercial LPG shortage has forced several establishments to shut. In Patna, residents have flagged delayed deliveries and cases where cylinders are marked as delivered but not received, prompting the district administration to step up monitoring, even as officials maintain there is no shortage.The impact is also visible in other industries. In Gujarat’s Morbi, around 430 ceramic units are set to remain shut for at least three weeks after the West Asia conflict disrupted gas supplies essential for manufacturing, according to an industry representative.
