The Ministry of Petroleum and Natural Gas issued a gazette notification on March 14, 2026, amending the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000, to prohibit households with active Piped Natural Gas connections from obtaining or refilling domestic LPG cylinders, according to reporting by NDTV Profit, Times of India, and Tribune India.
Under the amended order, consumers holding both PNG and LPG connections are directed to surrender their LPG cylinders immediately. Public sector oil companies are barred from issuing new LPG connections to customers who already have a PNG supply. The government’s stated objective is to redirect the constrained supply of LPG cylinders to domestic consumers who lack access to piped gas, as well as to hospitals and educational institutions.
Supply Context
India imports approximately 60% of its LPG demand, with the majority previously sourced from the Middle East. According to the research documents, LPG imports in the week beginning March 9, 2026, fell to 270,000 tonnes — described as the lowest level since April 2023 — as a direct consequence of disruptions to the Strait of Hormuz caused by the Iran-Israel conflict. Panic booking for LPG refills surged by 60% in early March, reaching 88.8 lakh bookings as of March 13, according to the same sources.
To manage demand, the government has imposed a mandatory minimum gap of 25 days between refill bookings in urban areas and 45 days in rural areas. Authorities have conducted raids at 1,483 locations in Uttar Pradesh alone, registering 24 FIRs against suspected hoarders, according to the research documents.
To ease the transition for PNG users, Indraprastha Gas Limited in Delhi is offering a ₹500 waiver on the first bill for new or reactivated connections, according to the research documents. The two Indian-flagged LPG carriers Shivalik and Nanda Devi, which transited the Strait of Hormuz on March 14 carrying a combined 92,712 metric tonnes of cooking gas, are expected to dock at Mundra and Kandla ports on March 16 and 17 respectively, providing near-term supply relief.
