Page 63 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

4. Press Brief: Incentive Scheme for Promotion of Domestic PNG Connections

The Government of India has approved the Incentive Scheme for Promotion of Domestic PNG
Connections, a major initiative aimed at bringing clean, safe and affordable piped cooking gas to
households across the country. Effective from 1 September 2026, the Scheme is designed to fast-track
the expansion of active PNG connections ensuring that more families can start using piped natural gas
in their kitchens at the earliest.

How this will benefit the common people

Currently, there are 1.74 crore Domestic PNG connections across the country. The new Scheme
directly incentivises the City Gas Distribution (CGD) companies to actively convert unbilled
connections into working gas connections, and expand the PNG network to new areas.

Benefits of Piped Natural Gas (PNG) for households

Piped Natural Gas offers households a safer, cleaner and more convenient alternative to LPG cylinders
and traditional cooking fuels:

• Safety: PNG is supplied through underground pipelines at low pressure, eliminating risks
associated with storing and handling cylinders, and being lighter than air, it disperses quickly
and safely in case of any leakage.

• Convenience: There is no need to book, store, or replace cylinders — gas is available round
the clock directly at home, with billing based on actual metered consumption, similar to
electricity or water.

• Affordability: Households pay only for the gas they actually consume, and PNG is generally
cheaper than LPG on a per-unit energy basis, reducing monthly household fuel expenses over
time.

• Environment-friendly: Being a cleaner-burning fuel, PNG produces fewer pollutants than
conventional cooking fuels, contributing to better indoor air quality and lower carbon
emissions.

• Uninterrupted supply: Continuous pipeline supply removes dependence on cylinder delivery
logistics, particularly benefiting households in high-rise buildings and dense urban colonies.

Government's continued push for PNG expansion

This Scheme builds on a series of steps the Government has taken over the past few months to
accelerate PNG expansion and make the transition to clean cooking fuel easier for households:

• Streamlined regulatory clearances: Accelerated Approval Framework and standardised
Right-of-Way charges under the Natural Gas & Petroleum Distribution Order, 2026 have been
issued, which would help in priority disposal of applications within a defined timelines for PNG
infrastructure, along with standardized charges.

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