Now Reading: Oil Ministry pushes LPG-to-PNG conversion amid West Asia crisis
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Oil Ministry pushes LPG-to-PNG conversion amid West Asia crisis
The Oil Ministry is pushing to convert LPG consumers to piped natural gas (PNG) as the West Asia conflict disrupts supply chains affecting half of India's LPG consumption. The ministry held a…
The Oil Ministry is pushing to convert LPG consumers to piped natural gas (PNG) as the West Asia conflict disrupts supply chains affecting half of India's LPG consumption. The ministry held a review meeting with PSU oil marketing companies and city gas distribution entities to fast-track the move.
Roughly 21 lakh households where PNG infrastructure is ready can immediately shift. India achieved 1.74 crore domestic PNG connections till June, against a target of 4.41 crore. The cost of a 14.2 kg LPG cylinder hit Rs 1,600 in June 2026, while PSU OMCs charged Rs 942 per cylinder from general consumers and Rs 642 from PM Ujjwala households.
Under-recoveries for PSU OMCs on LPG swelled to over Rs 59,000 crore in July 2026. The retail selling price of Rs 942 per cylinder has carried an implicit subsidy of up to Rs 700 per cylinder. The ministry directed CGD entities to bring ready households under the D-PNG network immediately.
Indian Opinion Analysis
India imports roughly 60% of its LPG from the Middle East, making any Gulf disruption a direct fiscal risk. The under-recovery figure of Rs 59,000 crore exceeds the combined annual budgets of many states and is ultimately borne by the Centre's oil subsidy bill. PNGRB's target of 4.41 crore domestic PNG connections by 2026 was ambitious from the start, and with only 39% achieved by mid-year, the conversion push is as much about shielding the exchequer as it is about energy security. The real pressure point is the coming winter: if Gulf supplies tighten further, the implicit subsidy per cylinder will climb again, and the government will have to choose between higher retail prices or a bigger subsidy outlay. PNGRB's next quarterly data release in November will show whether the 21-lakh household target is being met.
Source: thehindubusinessline.com
This brief was synthesised by AI from the source linked above.
