Amid the ongoing Iran war, there have been persistent concerns over LPG supply interruption.
To prevent a domestic energy crisis, the Centre has invoked the Essential Commodities Act, 1955, giving it the authority to override existing commercial contracts. Under this order, Priority Sector I—which includes domestic Piped Natural Gas (PNG) for households and Compressed Natural Gas (CNG) for transport—is assured 100% of its average consumption over the past six months.
This means that if gas is operationally available in the national grid, supplies must first be directed to household kitchen pipelines before being diverted to industries such as factories or power plants.
What is the difference between LPG and piped gas?
The main difference between Liquefied Petroleum Gas (LPG) and Piped Natural Gas (PNG) lies in their composition and method of supply.
LPG, a mixture of propane and butane derived from crude oil refining, is delivered to households in pressurised cylinders that need periodic replacement. On the other hand, PNG is natural gas—mainly methane—supplied directly to homes through underground pipelines by city gas distribution networks, providing a continuous flow without the need for storage cylinders.
However, both are part of the larger energy supply network that supports domestic cooking fuel.
India is expanding its piped gas network under the oversight of the Petroleum and Natural Gas Regulatory Board.
Petroleum Planning and Analysis Cell (PPAC) data suggest that India consumed about 31.3 million tonnes of LPG in FY2024-25.
As of late 2024, India had just around 1.36 crore domestic PNG connections, compared with 33.2 crore LPG connections.
Will LPG shortage impact piped gas users?
Gas distributors say household piped gas supply is unlikely to face disruption despite rising global tensions. In Madhya Pradesh, Manish Verma, marketing head of Aavantika Gas Limited told Times of India that the cost of procuring gas has increased due to the war, but domestic PNG supply is expected to remain largely unaffected and continuity will be maintained. According to him, while industrial gas supply is facing price pressure and tighter availability, households in cities such as Indore, Gwalior and Ujjain remain a priority.
Officials from city gas companies in Uttar Pradesh also told TOI that domestic piped gas connections are being prioritised, with supply maintained for households even as industrial users may face higher costs and tighter supply.
The Ministry has tasked GAIL Gas Authority of India Limited with managing a “pooled price” mechanism to ensure that even diverted gas remains affordable for priority sectors like home kitchens.
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