LPG vs PNG: Will LPG cylinders be discontinued? Understand the new rules of the government and the real truth of PNG connection


The discussion is spreading rapidly among the LPG consumers across the country that the government is going to completely stop the traditional LPG cylinder and it has been made mandatory for every household to buy piped natural gas (PNG). Such news has created a state of confusion and anxiety in the minds of common consumers. However, the whole picture becomes quite clear when one understands the actual rules and guidelines of the Ministry of Petroleum and Natural Gas.

Are LPG cylinders being discontinued across the country?

This claim that LPG cylinders will be stopped in the entire country is completely misleading. The government has not issued any outright order to stop cylinders of general consumers. In India’s rural areas, towns and urban areas where gas pipeline infrastructure has not yet reached, the supply of 14.2 kg domestic LPG cylinders will continue as before.

To which areas and consumers will the new rule apply?

The main scope of the amendments and guidelines issued by the Ministry of Petroleum and Natural Gas is limited to those specific areas and housing societies where the PNG network has become fully operational:

  • Prohibit dual connections: According to the amended rules under the Essential Commodities Act, the same consumer or household cannot have both an active PNG connection and a domestic LPG cylinder simultaneously.

  • Mandatory in PNG areas: Consumers living in colonies and societies where pipeline gas supply has started are being asked to shift to PNG connection within the stipulated time after receiving the notice.

  • Stop on LPG refill: If PNG becomes operational in a household, oil marketing companies (IOCL, BPCL, HPCL) stop refill delivery of domestic LPG cylinders at that address.

Why is the government insisting on adopting PNG?

India imports about 60% of its domestic LPG needs from abroad. Global geopolitical tensions and fluctuating crude oil prices burden the country’s exchequer with huge subsidy and import bills.

While increasing the scope of Piped Natural Gas (PNG) will reduce the government’s import expenditure on one hand, on the other hand consumers will get relief from cylinder booking, delivery delays and security related risks. Moreover, PNG is considered more economical and environment friendly than LPG.

LPG cylinder surrender and refund process

If PNG connection has been activated in your area, you have to surrender your LPG connection:

  • The consumer has to fill the surrender form by visiting his gas distributor or through the official portal.

  • The empty cylinder and the regulator have to be returned to the agency.

  • The gas agency instead issues a ‘Termination Voucher’ (TV) and the security deposit amount deposited at the time of taking the connection is transferred directly back to the consumer’s bank account.