Amid scarce supply, the Centre has begun a pan-India investigation to prevent households from having dual access to liquefied petroleum gas (LPG) and piped natural gas (PNG). The move comes after the Petroleum Ministry last month barred households with PNG connections from retaining or obtaining subsidised domestic LPG cylinders.
Background of the Decision
The Petroleum Ministry's directive, issued in March 2026, aimed to streamline subsidy distribution and ensure that only eligible households receive LPG subsidies. With PNG connections expanding across urban and semi-urban areas, the government seeks to eliminate dual access, which leads to wasteful consumption and higher subsidy outlays.
Scope of the Investigation
The nationwide probe will involve cross-verification of consumer databases from oil marketing companies and PNG distributors. Officials will use Aadhaar-linked data to identify households that have both connections. The investigation covers all states and union territories, with special focus on regions where PNG networks are rapidly growing.
According to sources, the probe aims to detect and rectify anomalies within three months. Households found violating the rules may face penalties, including cancellation of subsidies or disconnection of gas supply.
Impact on Consumers
Consumers with both connections are advised to voluntarily surrender one of the connections to avoid penalties. The government has set up a helpline and online portal for consumers to self-declare their status. Those who give up LPG cylinders will continue to receive PNG without any disruption.
The Ministry has clarified that the directive does not affect households using PNG for commercial purposes or those with non-subsidised LPG cylinders.
Reasons Behind the Scarcity
The LPG supply crunch has been exacerbated by geopolitical tensions in West Asia, which have disrupted crude oil and gas supplies. India imports a significant portion of its LPG requirements, and the recent volatility has led to reduced availability and higher prices. The government's decision to prioritise PNG over LPG subsidies is part of a broader strategy to promote cleaner fuels and reduce import dependence.
Government's Stance
Petroleum Ministry officials have emphasised that the measure is necessary to ensure equitable distribution of subsidised fuel. They stated that the probe will help save thousands of crores in subsidy leakages annually. The Ministry also plans to expand PNG infrastructure to cover more households, thereby reducing the burden on LPG.
Consumer advocacy groups have welcomed the move but urged the government to ensure a smooth transition for affected households. They have called for adequate notice periods and compensation for those who may face temporary inconvenience.
The investigation is expected to conclude by July 2026, with a comprehensive report to be submitted to the Ministry for further action.
