India Offers Incentives to Boost Piped Gas Connections

India is offering incentives to city gas distribution companies to increase domestic connections for piped natural gas (PNG), as the country seeks to reduce its dependence on imported liquefied petroleum gas (LPG). The move comes as disruptions linked to the U.S.-Iran conflict have affected fuel shipments and increased import costs.

Under the scheme, which takes effect in September, distributors will receive an additional 200 standard cubic metres of cheaper domestically produced gas for every household that becomes an active, paying PNG customer. The incentive is aimed at encouraging companies to activate unused connections and expand pipeline networks to more homes. The government expects the lower gas-sourcing costs to help distributors recover investments in new connections in about three years, compared with roughly 10 years previously.

India currently has around 17.4 million domestic PNG connections, compared with about 331.4 million active household LPG customers as of July 1. The country imports around 60% of its LPG requirements and imported approximately 22 million metric tons in 2025, spending nearly $12 billion, largely on supplies from the Middle East. City gas companies, including Indraprastha Gas, Mahanagar Gas, GAIL Gas and Bharat Petroleum, have already introduced measures such as reduced installation charges to encourage the shift to piped gas.

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