India fast-tracks piped gas to reduce LPG import costs

India is leveraging a cooking gas supply crisis, intensified by the regional conflict involving Iran, to accelerate a nationwide transition toward piped gas infrastructure. The government has invoked emergency powers to streamline the distribution of liquefied petroleum gas (LPG) and fast-track the expansion of the city gas network, aiming to reduce heavy reliance on energy imports and lower the fiscal burden of fuel subsidies. Under new directives, limited LPG supplies are being prioritized for actual household use, and the government plans to halt cylinder deliveries to customers with existing piped gas connections within three months. To remove logistical bottlenecks, authorities have also implemented a system where pipeline project permissions are deemed granted if local officials fail to respond within a specific timeframe. > "Witness rapid expansion of CGD (city gas distribution) network across the country ... a crisis turned into an opportunity." In March, the country added 580,000 new households to its piped gas network, a significant jump from the 342,300 connections established during the same period last year. As the world's second-largest LPG importer, India currently sources approximately 60% of its needs from overseas, primarily the Middle East. In 2025, the nation imported 22 million metric tons of LPG at a cost of nearly $12 billion. The strategic shift toward Natural Gas is expected to reduce LPG imports by 10% to 15% by 2030. Analysts at ICRA suggest that this transition will help energy firms mitigate revenue losses and decrease the government's subsidy obligations, which reached $3.4 billion last year due to household fuel being sold at rates 56% lower than market prices. To support the initiative, major suppliers including INDRAPRASTHA GAS LTD, MAHANAGAR GAS LTD, and BHARAT PETROLEUM CORP LTD have introduced incentives such as reduced installation fees to encourage more households to switch. While the country currently has over 333 million household LPG customers, the piped gas network reached only 16.3 million by the end of last year. However, recent policy changes are expected to triple the annual connection rate to 7.5 million, with the goal of reaching up to 40 million households by 2030. > "This expansion would cut LPG imports and offer a safer, more convenient alternative for households."