Centre offers 10% extra commercial LPG to states pushing PNG shift

The Centre has offered states and Union Territories an additional 10% allocation of commercial LPG if they facilitate a long-term transition to piped natural gas (PNG), a senior official said on Wednesday.

Addressing a press briefing, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) in the Ministry of Petroleum and Natural Gas, said the proposal has been communicated to states through a letter dated March 18.

Commercial LPG consumers have been facing supply crunch due to disruptions linked to the Strait of Hormuz.

Under the plan, states can earn additional LPG allocation by undertaking specific reforms and facilitation measures to accelerate the rollout of city gas distribution (CGD) networks and encourage consumers to shift from LPG to PNG.

As per the ministry’s framework, 1% of the additional allocation will be given for setting up state- and district-level committees to approve CGD applications and address grievances.

Another 2% is tied to issuing orders granting deemed permissions for CGD projects, while 3% is linked to implementing a “dig and restore” policy to support pipeline laying.

The remaining 4% will be provided if states reduce annual rental or lease charges for CGD entities.

“The onus is now on states and UTs to take these reforms forward, expedite approvals, and ensure PNG connections for domestic, commercial and industrial consumers,” Sharma said.

The Centre has also urged states to expedite approvals for CGD pipeline laying, mandate clearance of new applications within 24 hours, waive road restoration and other local charges, relax working hours and seasons for project execution, and appoint nodal officers to ensure faster implementation.

Commercial LPG users, particularly in urban areas, have been encouraged to switch to PNG, with CGD companies offering multiple application channels and incentives for new connections.

The push comes amid continued concerns over LPG availability, even as supply conditions have improved in recent days.4

Sharma said about 93% of LPG bookings are now being made online, while home delivery has increased significantly to around 81%, up from 53% earlier.

The official said domestic LPG production from refineries has been ramped up by around 40%, and there are adequate crude oil inventories. There has been no “dry-out” reported at retail outlets or LPG distributorships, she added.