PNG connections prioritised for businesses amid nationwide LPG shortage

22 March,2026 05:45 PM IST |  New Delhi  |  mid-day online correspondent

Amid a nationwide LPG crisis, the Indian government has directed CGD firms to prioritise PNG connections for commercial establishments. Additional LPG allocations, anti-hoarding raids, and fast-tracked gas infrastructure approvals aim to stabilise fuel supply and prevent shortages

Representational image. File pic


Your browser doesn’t support HTML5 audio

Amid the ongoing LPG crisis across the country, the Government of India on Sunday asked city gas distribution (CGD) companies to prioritise piped natural gas (PNG) connections for commercial establishments.

As reported by news agency ANI, the government has also taken several steps to ensure stable fuel supplies as conflict in West Asia continues to impact energy flows.

In an official update released on Saturday, the Ministry of Petroleum and Natural Gas said, "City Gas Distribution (CGD) entities have been advised by the Govt. of India to prioritise PNG connections for commercial establishments such as restaurants, hotels and canteens across all their gas to address concerns regarding the availability of commercial LPG."

Petroleum and Natural Gas Ministry also added that the government has asked ministries and state governments to speed up approvals related to gas infrastructure, reported ANI.

The Ministry added, "Govt. of India, vide letter dated 19.03.2026 has requested all concerned Central Government Ministries to issue necessary directions... for immediate fast tracking and disposal of all pending and new permissions related to CGD infrastructure."

Indian government encourages offices to use PNG

The government has also encouraged government offices and establishments to move towards PNG usage where possible.

"All Central Government establishments/Colonies/Officers/Canteens may also be advised to switch over to PNG wherever the same is available," the ministry said.

To support commercial users, the government has increased the allocation of commercial LPG cylinders. The ministry asserted, "Govt. of India, vide letter dated 21.03.2026 has allowed another 20 per cent allocation of commercial LPG to states, which would take the overall allocation to 50 per cent."

"This additional 20 per cent allocation shall be given on priority to sectors like restaurants, dhabas, hotels, industrial canteens, food processing/dairy, subsidised canteens/outlets run by state governments or local bodies for food, community kitchens, and 5 kg FTL for migrant labourers," it added while expressing concerns over the LPG crisis across India.

It also noted that the government has stepped up monitoring to prevent black marketing and hoarding of LPG cylinders.

The Ministry of Petroleum and Natural Gas, while expressing concerns over the black marketing of LPG cylinders, also noted, "Raids continue to be carried out in many of the States/UTs to check the hoardings and black marketing of LPG. More than 3,500 raids have been conducted, and around 1,400 cylinders have been seized in Uttar Pradesh, Telangana, Maharashtra, etc., as per ANI.

The ministry also stated that "All refineries are operating at high capacity, with adequate crude inventories in place", adding that "the country is also maintaining sufficient stocks of petrol and diesel."

It also reassured the public that there are no fuel shortages at retail outlets (ROs).

"No cases of fuel dry-outs have been reported at any of the ROs by the oil marketing companies," the ministry said, while advising people "not to resort to panic buying".

The development comes amid the escalating tensions and conflict that began on February 28 with the killing of 86-year-old Iran's Supreme Leader, Ayatollah Ali Khamenei, in joint military strikes by the US and Israel.

(With inputs from ANI)

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!
national news India news india news Israel-Iran War
Related Stories