India pushes LPG-to-PNG conversion amid West Asia crisis

The Oil Ministry is pushing to convert domestic LPG consumers to piped natural gas (PNG) as the West Asia conflict continues to disrupt supply chains, thehindubusinessline.com reports. At a review meeting with PSU oil marketing companies and city gas distribution entities, officials stressed fast-tracking the shift on a war footing, noting that roughly 21 lakh households where PNG infrastructure is ready can immediately switch. India had 1.74 crore domestic PNG connections till June, against a pro-rata target of 4.41 crore, achieving 39 per cent.

The push comes as the cost of a 14.2 kg domestic LPG cylinder hit Rs 1,600 in June 2026, with PSU OMCs charging Rs 942 from general consumers and Rs 642 from PM Ujjwala households. Under-recovery for supplying LPG at below market rates swelled to over Rs 59,000 crore in July 2026. Separately, assamtribune.com reports that India's LNG imports rose 24 per cent to $5.6 billion during April-July, as shipments were increasingly sourced from the US amid the crisis. India has diversified LNG sources from six to 15 countries, and crude oil sourcing from 27 to 41 countries.

The West Asia conflict has choked the Strait of Hormuz, disrupting Gulf supplies. India imported 0.62 million tonnes of LPG from the US in August, and 0.89 million tonnes in July, accounting for over 73 per cent of LPG imports, per Kpler data. The Ministry continues to push for faster adoption of domestic PNG to reduce LPG dependence.