Govt says policy measures kept household PNG prices stable despite Middle East crisis

New Delhi [India], July 23 (ANI): The Government has said it has managed to keep piped natural gas (PNG) prices for households "relatively stable and affordable" despite higher global liquefied natural gas (LNG) 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 The order was later withdrawn after the supply situation improved.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)