Beyond LPG: Is PNG ready for India’s next cooking fuel transition? -Governance Now

Beyond LPG: Is PNG ready for India’s next cooking fuel transition?

Govt should consider a PNG-focused inclusion programme on the lines of PMUY to expand access in urban, semi-urban, and high-density peri-urban areas

Himanshu Jaiswal and Badri Narayanan | May 4, 2026

#Conflict #Energy

(Photo: Courtesy Gail India)

India, the second-largest importer and consumer of LPG after China, faces growing pressure due to supply constraints. Most of India's LPG imports transit through the Strait of Hormuz, a focal point of global turmoil. Given that LPG forms the backbone of household kitchens and the restaurant industry, any supply disruption triggers far-reaching repercussions. To address the current LPG crisis, the government has pursued multiple approaches: maximising domestic output, prioritising household over commercial users, acting against hoarding and black marketing, and suspending new LPG connections. In parallel, authorities have encouraged faster piped natural gas (PNG) connections to ease pressure on LPG demand, with more than 5 lakh PNG connections activated since March 2026.

Apart from being a clean cooking fuel, PNG is lighter than air, making it easier to dissipate in case of leakage. It is generally more economical than LPG, metered for exact usage, and available 24x7 through pipelines, eliminating the need to book or store cylinders. Despite these advantages, PNG has not achieved nationwide mass adoption comparable to LPG. This piece examines the demand-supply dynamics to understand why.

Although India imports around 60% of its LPG requirements, domestic production, a by-product of crude oil refining and natural gas processing, remains limited relative to rapidly growing demand. As Figure 1 illustrates, LPG consumption has nearly doubled from 15.3 MMT in 2011-12 to 29.7 MMT in 2023-24, driven largely by the Pradhan Mantri Ujjawala Yojana (PMUY), which expanded household adoption particularly in rural India. Domestic production, however, rose only modestly from 9.6 MMT to 12.8 MMT over the same period, with the widening gap bridged almost entirely through imports, which rose steeply from 5.8 MMT to 18.5 MMT.

India's natural gas dynamics, as shown in Figure 2, present a more uneven trajectory. Total consumption moved from 48.5 MMT in 2011-12 to 53.8 MMT in 2024-25, modest overall growth marked by periods of stagnation. Unlike LPG, PNG consumption has lacked a consistent upward trend. Domestic production, which stood well above imports at 35.1 MMT against 13.5 MMT in 2011-12, has since declined to 26.9 MMT, while imports have nearly doubled to 27 MMT, now equaling production. This reflects structural constraints: limited pipeline and city gas distribution infrastructure, uneven regional coverage, and slower expansion of household connections.

Table 1 highlights the sharp divergence in scale of expansion between LPG and PNG. LPG connections grew from 14.5 crore in 2014 to 32.4 crore in 2024, an addition of nearly 18 crore connections, reflecting massive nationwide adoption. PNG connections, by contrast, added just over 1 crore new connections, growing from 21 lakh to 129.2 lakh over the same period, underscoring its untapped potential, especially in semi-urban and rural areas.

Regional disparity further constrains PNG's expansion. As Table 2 shows, LPG connections are relatively evenly spread, with the top five states accounting for around 47% of total connections. PNG connections, however, are heavily concentrated, with the top five regions alone accounting for nearly 77% of domestic connections. Maharashtra and Gujarat, two of the most urbanized states, dominate in PNG connections, reflecting the concentration of city gas networks in a few urban-industrial centres.

This stark disparity underscores that PNG expansion remains geographically uneven and infrastructure-dependent. Going forward, India must target a mix of cooking fuels to reduce the vulnerability. As a policy recommendation, the government may consider a PNG-focused inclusion programme on the lines of PMUY with subsidised connection charges and easier financing to expand access in urban, semi-urban, and high-density peri-urban areas, while LPG remains the primary clean cooking fuel in remote regions where pipelines are unviable.

The commercial food and hospitality sector should be encouraged to shift from LPG to PNG through concessional connection fees, faster approvals, and targeted incentives. PNG expansion should also be integrated into a broader urban infrastructure agenda encompassing faster rollout of city gas networks, streamlined clearances, and better coordination with municipal corporations. Domestic gas production, LNG planning, and renewable cooking solutions should also be on the development agenda.

Himanshu Jaiswal is Research Fellow, Infisum Modeling Inc. Badri Narayanan is Founder and Director, Infisum Modeling Inc.

Comments

Other News

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state. According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po

Borrowing troubles: How small loans are quietly trapping youth

A silent crisis is playing out in the pocket of young India, not in stock markets or government treasuries, but in smartphones of college students and first-jobbers who clicked on the Apply Now button without reading the small print. A decade ago, to take a loan, you had to do some paperwor