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.

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