New Delhi: Recent disruptions and concerns related to LPG availability have renewed interest in alternative household cooking fuels, including piped natural gas (PNG). Consumers are also being encouraged to consider PNG connections as an alternative to LPG cylinders.

PNG is natural gas supplied to households through a pipeline network. According to information released in connection with a new government incentive initiative, the Centre has approved measures aimed at encouraging wider adoption of domestic PNG connections.

The proposed initiative, referred to as the Incentive Scheme for Promotion of Domestic PNG Connections, is intended to encourage City Gas Distribution (CGD) companies to activate inactive or unbilled connections and expand their networks to new areas. The scheme is reported to be scheduled for implementation from September 1, 2026.

Under the scheme, eligible CGD entities may receive additional allocation of domestically produced, lower-priced APM gas for every new billed domestic PNG connection achieved beyond the prescribed target in their authorised areas. Reports on the scheme have stated that the additional allocation could be up to 200 standard cubic metres (SCM) per qualifying connection.

The additional gas allocation is expected to help CGD companies manage their overall input costs and may encourage them to invest further in expanding domestic PNG infrastructure and providing new connections.

The incentive programme is proposed to operate for six months in two phases, according to the information released about the initiative.

How PNG differs from LPG

Unlike LPG cylinders, PNG is supplied directly to connected households through underground pipelines. Consumers do not need to book, store or replace cylinders. A meter records consumption, and users are generally billed according to the quantity of gas consumed.

PNG can also offer certain convenience and environmental advantages when compared with conventional LPG use. Natural gas produces lower emissions of some pollutants than several other fossil fuels, although the overall environmental impact depends on the source, distribution system and actual consumption.

To encourage wider adoption of natural gas, discussions have also included calls for states to reduce VAT on natural gas to 5 per cent. Further initiatives, including the proposed National PNG Drive 2.0 and a digital platform for applying for and tracking new PNG connections, have also been reported.

As the proposed measures are intended to expand household PNG access, consumers may see greater availability of pipeline-based cooking gas in areas covered by City Gas Distribution networks. Availability of a connection, however, depends on the presence of an authorised PNG network in the respective locality.