For households that are tired of booking LPG cylinders and waiting for deliveries, piped natural gas could become a more accessible option. The government has introduced a new incentive scheme to accelerate the expansion of domestic PNG connections across India.

The Incentive Scheme for Promotion of Domestic PNG Connections came into effect on September 1, 2026. Its objective is to encourage City Gas Distribution companies to activate existing connections and expand PNG networks into new areas.

What is the new PNG scheme?

Piped Natural Gas, or PNG, is supplied directly to homes through an underground pipeline network. Unlike LPG, households do not need to store a cylinder or arrange a refill every time the gas runs out.

The government says there were around 1.74 crore domestic PNG connections in India as of August 18, 2026. The new scheme is intended to increase this number and make piped cooking gas available to more households.

How will the scheme work?

The government is providing incentives to City Gas Distribution entities rather than giving a direct cash subsidy to individual households.

Under the scheme, eligible gas distribution companies can receive an additional allocation of 200 Standard Cubic Metres of domestically produced, lower-priced gas for each additional billed domestic PNG connection achieved above the prescribed threshold in a geographical area.

The scheme will be implemented in two six-month tranches.

The idea is to make it financially more attractive for gas companies to expand their household PNG networks and convert inactive or unbilled connections into working connections.

What does this mean for households?

The scheme could make it easier for more homes to obtain PNG connections as gas distribution networks expand.

For consumers, PNG offers several practical advantages:

• No need to store heavy LPG cylinders

• Continuous gas supply through a pipeline

• No need to wait for cylinder delivery

• Payment based on the gas actually consumed

• Potentially lower cooking-fuel costs depending on local PNG and LPG prices

• Less storage space required in the kitchen

The government also describes PNG as a cleaner cooking fuel compared with conventional household fuels.

Will PNG be cheaper than LPG?

PNG can offer cost advantages, but consumers should not assume that switching will automatically reduce their monthly bill.

The actual cost depends on the local tariff, taxes, consumption and LPG prices in the area. The government is encouraging states to reduce VAT on natural gas to 5%, and several states have already taken steps in this direction.

Therefore, households should compare their current LPG expenditure with the applicable PNG tariff before making a decision.

What about the connection cost?

The cost and installation process can vary depending on the City Gas Distribution company and the geographical area.

The government is also working towards streamlined approvals and a unified digital registration platform to make applying for and tracking domestic PNG connections easier.

Consumers should check the official gas distributor operating in their area for current connection charges, security deposits, installation requirements and applicable offers.

Can LPG users switch to PNG?

Yes, households in areas covered by a PNG network can explore switching from LPG to PNG, subject to the availability of a domestic connection.

However, consumers should not surrender an LPG connection based solely on advertisements or unofficial messages. First confirm that PNG service is available at the property and understand the connection process and applicable charges.

Why is the government promoting PNG?

The initiative is part of a broader effort to expand India's city-gas distribution network and encourage cleaner household cooking fuel.

The government expects the financial incentives to help gas distribution companies expand connections more quickly. It estimates that the measures can substantially shorten the payback period for investments made in domestic PNG connections, creating an additional incentive for companies to extend their networks.

What should consumers do now?

If PNG is available in your locality, you can check with the authorised City Gas Distribution company about:

• Whether your property falls within the PNG network

• New connection charges

• Security deposit requirements

• Current PNG tariff

• Installation timeline

• Required documents

• Whether any conversion or connection offer is currently available

For households in areas where PNG is not yet available, the new scheme could eventually help expand the network into additional locations.

With the government now actively incentivising the expansion of domestic PNG connections, more Indian households could have the option of choosing piped cooking gas instead of relying entirely on LPG cylinders in the coming years.

Important: PNG availability, tariffs, connection charges and eligibility vary by location and gas distribution company. Always verify the latest details with the authorised City Gas Distribution entity before paying any connection fee or surrendering an existing LPG connection.