India mandates piped natural gas households surrender subsidised liquefied petroleum gas connections
Change
India on March 14 amended the Liquefied Petroleum Gas (LPG) Regulation to require households with piped natural gas to surrender subsidised domestic LPG connections and barred government oil companies and their distributors from issuing new connections or refilling LPG for piped-natural-gas consumers, with about 6,000 users surrendering by March 28.
Why it matters
The order reserves subsidised domestic LPG for households that do not have piped natural gas, forcing distributors to reroute cylinders away from PNG-connected addresses. Consumers in rented homes with piped supply will also be required to transition, and roughly 60 lakh consumers are estimated to be eligible for removal from the subsidised LPG rolls.
Implications
- • Public sector oil companies' LPG distribution units and authorised LPG distributors must stop accepting new subsidised domestic LPG applications and must refuse refills for customers registered on piped natural gas supply rolls or they will be in breach of the amended Liquefied Petroleum Gas Regulation order.
- • Households with piped natural gas connections must surrender their subsidised domestic LPG connections immediately or they will be ineligible for future subsidised cylinder refills and cannot apply for new subsidised connections.
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Topics
Policy & Regulation Regulatory Actions Supply Chain & Logistics Oil & Gas