The initiative, titled the Incentive Scheme for Promotion of Domestic PNG Connections, launches on September 1, 2026, targeting an urgent transition for the 60% of Indian households currently dependent on LPG. Before the war, 90% of the nation’s LPG imports transited through the now-blocked Strait of Hormuz, creating an immediate supply vacuum that pushed prices to unsustainable levels.
India Incentivizes Piped Gas Expansion Amid LPG Supply Crisis
Conflict across the Middle East has severed critical supply lines through the Strait of Hormuz, forcing India to overhaul its domestic cooking fuel strategy. With import costs for liquefied petroleum gas spiking, the government is now pivoting toward a massive expansion of piped natural gas networks to insulate households from volatility.
To accelerate the transition, the government will provide city gas distributors with an additional 200 standard cubic meters of lower-priced domestic gas for every new active connection. By shifting the procurement burden, authorities aim to reduce the reliance on expensive imported LNG currently used in the transport sector. This two-tranche, six-month program aims to bridge the gap between volatile global markets and domestic energy needs, effectively subsidizing the infrastructure required to replace imported cylinders with a reliable, local piped supply.
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