Govt says policy measures kept household PNG prices stable despite Middle East crisis
New Delhi, July 23
The Government has said it has managed to keep piped natural gas prices for households "relatively stable and affordable" despite higher global liquefied natural gas prices caused by the Middle East crisis.
In a written reply to a starred question in the Lok Sabha, the Ministry of Petroleum and Natural Gas said, "Despite the Middle East crisis, leading to higher LNG prices, the measures undertaken by the Government have helped keep PNG (Domestic) prices relatively stable and affordable for household consumers."
The ministry said domestic PNG continues to receive administered-price natural gas, capped at USD 7 per MMBtu for FY2026-27, and added that since the third quarter of FY2023-24, the government has allocated domestic natural gas equivalent to 105 per cent of the previous quarter's actual PNG consumption to support the expansion of household PNG connections.
The government also said household PNG remained among the priority sectors for gas allocation under the temporary Natural Gas (Supply Regulation) Order, 2026, alongside CNG, LPG production and fertiliser, to ensure "continuity of essential services, energy security and public welfare." The order was later withdrawn after the supply situation improved.
The reply also clarified that while PNG offers the convenience of pipeline supply, "the cost competitiveness of PNG vis-a-vis LPG may vary across locations," as retail prices depend on factors including gas procurement costs, transportation charges, state taxes, subsidies and distribution costs.
On the expansion of the city gas distribution network, the ministry said entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) have been permitted to develop networks across 309 geographical areas covering 683 districts. As of May 31, 2026, they had provided over 1.70 crore domestic PNG connections and laid 6.71 lakh inch-km of pipeline.
The reply further said the National PNG Drive 2.0 has introduced measures such as digital registration, simplified connection processes and consumer outreach programmes to encourage new PNG connections.
However, while the question asked whether the government has prepared a roadmap to connect an additional 1.2 crore households to the PNG network by March 2027, the reply does not explicitly confirm such a target. Instead, it refers to National PNG Drive 2.0, infrastructure expansion, regular monitoring of city gas distribution projects and review meetings with implementing entities and state governments.
The clarification came in a written reply to a question on the expansion of the Piped Natural Gas (PNG) network raised by MPs during the ongoing Monsoon Session of Parliament.
— ANI
Reader Comments
Living in Delhi, I've seen the PNG network expand rapidly. Our colony got connections last year and it's genuinely convenient. The minister's statement about cost competitiveness varying by location is a fair point - in some areas it's cheaper than LPG, but in others the distribution costs make it similar. Still, for environmental reasons, this is the way forward.
"Relatively stable and affordable" - that's a very carefully worded statement! In my city (Mumbai), the PNG price has actually gone up by about 15% in the last year. While global prices might have risen more, the common household still feels the pinch. The 105% allocation of domestic gas is a good step, but more transparency in pricing formulas would help build trust.
Important that they prioritised household PNG alongside CNG, LPG and fertiliser during the crisis. The one thing I'm concerned about: in smaller towns, the PNG infrastructure is still patchy. My parents in a tier-3 city have been waiting for connections for over a year despite regular payments. Hope the review meetings with state governments yield results.
With 1.7 crore connections already and 6.71 lakh inch-km of pipeline, the scale of this network is impressive for a developing country. The government's approach of using administered pricing (capped at USD 7) has protected households from the worst of global volatility. Smart policy, but they need to be more open about future targets.
The digital registration and simplified processes under National PNG Drive 2.0 are
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