India Looks To Turn LPG Import Crisis Into Push For Piped Gas
OIL & GAS

India Looks To Turn LPG Import Crisis Into Push For Piped Gas

India is using a cooking gas crisis triggered by the Middle East conflict to plug leaks in its distribution chain and accelerate a shift to piped gas to reduce liquefied petroleum gas (LPG) imports and ease subsidy pressures. The government has invoked emergency powers to ensure limited LPG supplies are directed to households and will halt supplies after three months for customers linked to piped connections. In March the government added 580,000 households to the piped network compared with 342,300 a year earlier.

India is the world's No. 2 importer of LPG and meets about 60 per cent of its needs with overseas purchases; it shipped about 22 million (mn) metric tonnes (t) in 2025, mostly from the Middle East, placing strain on supply chains and the public purse. The disruption exposed vulnerabilities in an import-dependent system and prompted measures to manage supply and demand. Analysts at a credit rating agency estimate imports could decline by about 10 per cent to 15 per cent by 2030 as network expansion takes effect.

Shifting consumers to piped natural gas, sold closer to market rates, is expected to cut the subsidy burden and improve supply efficiency. Retailers sell LPG to commercial users at market prices while household cooking fuel is subsidised and about 56 per cent cheaper, which has weighed on public finances; a recent limited compensation to retailers imposed multi-billion costs on the accounts. Suppliers including major local companies have offered incentives such as reduced installation charges to speed connections.

India has 333.7 mn household LPG customers including 106 mn low-income families receiving subsidised gas, and local suppliers connected about two mn to two point five mn consumers annually, taking the total to 16.3 mn at the end of December. Officials expect policy changes to lift the pace to about 7.5 mn connections a year and the national total to between 35 mn and 40 mn by 2030, which would materially cut LPG imports. The shift is framed as a way to improve convenience and safety for households while containing fiscal pressures.

India is using a cooking gas crisis triggered by the Middle East conflict to plug leaks in its distribution chain and accelerate a shift to piped gas to reduce liquefied petroleum gas (LPG) imports and ease subsidy pressures. The government has invoked emergency powers to ensure limited LPG supplies are directed to households and will halt supplies after three months for customers linked to piped connections. In March the government added 580,000 households to the piped network compared with 342,300 a year earlier. India is the world's No. 2 importer of LPG and meets about 60 per cent of its needs with overseas purchases; it shipped about 22 million (mn) metric tonnes (t) in 2025, mostly from the Middle East, placing strain on supply chains and the public purse. The disruption exposed vulnerabilities in an import-dependent system and prompted measures to manage supply and demand. Analysts at a credit rating agency estimate imports could decline by about 10 per cent to 15 per cent by 2030 as network expansion takes effect. Shifting consumers to piped natural gas, sold closer to market rates, is expected to cut the subsidy burden and improve supply efficiency. Retailers sell LPG to commercial users at market prices while household cooking fuel is subsidised and about 56 per cent cheaper, which has weighed on public finances; a recent limited compensation to retailers imposed multi-billion costs on the accounts. Suppliers including major local companies have offered incentives such as reduced installation charges to speed connections. India has 333.7 mn household LPG customers including 106 mn low-income families receiving subsidised gas, and local suppliers connected about two mn to two point five mn consumers annually, taking the total to 16.3 mn at the end of December. Officials expect policy changes to lift the pace to about 7.5 mn connections a year and the national total to between 35 mn and 40 mn by 2030, which would materially cut LPG imports. The shift is framed as a way to improve convenience and safety for households while containing fiscal pressures.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement