Government launches new PNG incentive scheme to prevent gas shortages
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Aaj Tak
www.aajtak.in

Government launches new PNG incentive scheme to prevent gas shortages

The central government has announced a new incentive program aimed at expanding access to piped natural gas (PNG) in residential homes. This initiative, named the 'Incentive Scheme for Promoting Domestic PNG Connections,' is designed to provide the population with clean and relatively affordable gas, as well as increase the total number of domestic PNG connections.

The new PNG scheme will come into effect on September 1, 2026, and will be implemented in two six-month phases. According to Reuters, the government is providing incentives to urban gas distributors to encourage an increase in the number of homes using natural gas via pipelines. Furthermore, a single-window portal is being developed to simplify the application process for new connections.

The launch of this program is linked to global oil and gas import issues faced by many countries dependent on these resources, including India. The conflict between the US and Iran has disrupted fuel supplies, and its consequences are still felt, leading to rising costs for oil and gas imports. Expanding the number of PNG users in the country can help India reduce its dependence on imported LPG and decrease subsidy expenditures.

Under the new scheme, which will take effect next month, urban gas distribution companies will receive an additional 200 standard cubic meters of cheaper domestic gas for each household they connect, after the user begins using PNG and paying bills. The government expects this additional gas allocation to help these companies lower their gas procurement costs. Moreover, it will allow distributors to utilize existing inactive PNG connections and cover more households.

The Ministry of Petroleum and Natural Gas clarified that thanks to this incentive program, PNG distributor companies will be able to recoup investments made in new connections in just three years, whereas previously this took about ten years. Although the incentives are intended for companies, the scheme is also beneficial for PNG users. They will be able to eliminate problems related to ordering and delayed delivery of LPG cylinders, as well as save on kitchen budgets, since PNG is cheaper than LPG.

It should be noted that India is the second-largest importer of LPG in the world and covers about 60% of its needs through imports, most of which comes from the Middle East. In 2025, India imported about 22 million metric tons of LPG, costing approximately $12 billion. According to official data, there are currently about 17.4 million domestic PNG connections in India. The new government program will enable companies such as Indraprastha Gas and Mahanagar Gas to expand their networks.

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