Now Reading: LPG curbs trap households where PNG firms skip last-mile connections
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LPG curbs trap households where PNG firms skip last-mile connections
The Story in Brief
Households in remote areas even along gas pipelines face a double whammy: state-run gas agencies stopped issuing new domestic LPG connections in some areas from March this year, while piped natural gas suppliers often find it cheaper to pay penalties than bear the high cost of laying last-mile pipelines, people familiar with the matter said.
Distributors were instructed not to issue new 14.2kg LPG connections in areas where PNG is available or being made available, the people said on condition of anonymity. Restrictions also apply to refills for existing connections in some such areas even without individual PNG connections. A parliamentary panel flagged the problem in a report presented in August, quoting the petroleum ministry as telling the committee that PNG would not reach every home because the initial cost of providing piped gas is very high.
CGD companies bid for licences committing to provide a certain number of PNG connections and CNG stations, and face penalties for failing to meet targets. A PNGRB presentation in April 2026 showed penalties totalling ₹34.31 crore had been imposed in 20 geographical areas for shortfalls. The parliamentary committee report said companies are required to provide about 12.6 crore domestic PNG connections and establish 18,336 CNG stations by 2034. As of 31 January 2026, they had provided around 1.63 crore domestic PNG connections and established 8,616 CNG stations.
Indian Opinion Analysis
The disconnect between LPG restrictions and PNG expansion leaves households in areas with CGD licences but no last-mile connection without a legal domestic fuel option, forcing them into smaller cylinders or the black market. The parliamentary committee report confirms the petroleum ministry’s own admission that PNG cannot reach every home because the infrastructure cost is prohibitive. Current penalties on CGD companies for unmet targets may be too low to change their cost-benefit calculus, given the aggregate penalty of ₹34.31 crore against infrastructure commitments of 12.6 crore connections by 2034. The progress to date stands at about 1.63 crore connections, or roughly 13% of the target, with eight years remaining. The PNGRB’s latest penalty data from April 2026 is the concrete benchmark to watch against future compliance.
Source: hindustantimes.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
