India uses LPG crisis to accelerate shift toward piped gas network

India is turning a liquefied petroleum gas (LPG) supply crisis triggered by the Iran war into an opportunity to expand its piped gas infrastructure and reduce dependence on imports and subsidies.

The government has invoked emergency measures to prioritize limited LPG supplies for household use. It also plans to stop LPG supply within three months for consumers who already have access to piped gas connections, aiming to push more users toward the alternative system.

Officials have introduced reforms to speed up pipeline development, including setting strict timelines for approvals. If authorities fail to respond in time, permissions will be automatically granted, while landowners and local bodies are required to allow pipeline construction.

According to Neeraj Mittal from the Ministry of Petroleum and Natural Gas, the crisis is driving rapid expansion of the country’s city gas distribution network. In March alone, about 580,000 new households were connected to piped gas, a sharp rise from 342,300 connections a year earlier.

India is currently the world’s second-largest LPG importer, meeting around 60% of its demand through imports—mostly from the Middle East. In 2025, the country imported about 22 million metric tonnes of LPG, spending nearly $12 billion.

The disruption in supply has exposed the risks of heavy import dependence, prompting policymakers to shift toward natural gas. Analysts say these measures could reduce LPG imports by 10% to 15% by 2030.

Switching to piped gas is also expected to ease government spending, as LPG sold to households is heavily subsidized, often at prices far below market rates. Reducing reliance on subsidies could help manage fiscal pressures while improving efficiency in energy distribution.

To support the transition, major energy companies such as Indraprastha Gas, Mahanagar Gas, GAIL Gas and Bharat Petroleum are offering incentives like reduced installation charges for new piped gas connections.

India currently has over 333 million LPG users, including more than 100 million low-income households receiving subsidies. While about 16.3 million homes were connected to piped gas by the end of last year, new policies could boost annual connections significantly and raise the total to between 35 million and 40 million by 2030.

Experts say expanding piped gas will not only cut imports but also provide a safer and more convenient cooking fuel option for households across the country.