PNG connections surge with 2.7 lakh added in March

India has accelerated the rollout of piped natural gas (PNG), issuing 2.7 lakh new connections in March even as supply disruptions triggered by the West Asia conflict and the closure of the Strait of Hormuz continue to impact LPG availability.

According to the oil ministry, more than 3.1 lakh connections across domestic, commercial and institutional categories were gasified during the month. These include previously applied connections that became operational in March, while the 2.7 lakh figure represents fresh connections currently in the process of being activated.

The government’s push for PNG comes amid constraints in LPG supplies, as the Strait of Hormuz — a key shipping route for India’s imports — remains effectively shut due to the ongoing conflict. In contrast, nearly half of India’s natural gas demand is met through domestic production, with the remainder sourced from diversified global suppliers.

At the end of February, India had 1.64 crore domestic PNG connections, along with 48,568 commercial and 21,512 industrial users. Officials said the expansion drive will continue till June, with city gas distributors directed to fast-track connections for households, hostels, community kitchens and educational institutions.

Authorities have prioritised gas allocation for PNG and CNG segments, while industrial users are receiving around 80 per cent of their usual supply. Additional LNG cargoes are being arranged to stabilise availability.

To cushion consumers, the government has cut excise duty on petrol and diesel by Rs 10 per litre and imposed export levies on diesel and aviation turbine fuel to boost domestic supply. Fuel stocks remain adequate, though sporadic panic buying has been reported.

LPG distribution continues at scale, with over 50 lakh cylinders delivered daily in March. Commercial LPG supply has been restored to about 70 per cent of pre-crisis levels, prioritising key sectors like hospitality and food processing.

The government has urged citizens to avoid hoarding and rely on official updates, while intensifying action against black marketing and ramping up alternative fuel supplies such as kerosene.