Govt new rule on LPG: Households with PNG connection asked to surrender gas cylinders

The government has released a new regulation on households with piped natural gas (PNG). The Union Ministry of Petroleum and Natural Gas has requested such households to surrender their LPG cylinders. The rule is applicable to individuals who possess PNG and LPG links. According to the government, the move will assist in controlling the supply of LPG in the prevailing global fuel crisis. Also Read: Buying an Induction Cooktop? Keep these 6 things in mind first

Government Initiates New Rules for Piped Gas

The ministry issued a notice to revise the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order. According to the new regulation, a household having a PNG connection is not allowed to have a domestic connection of LPG. They have to give in their LPG cylinder. Also Read: 6 best microwave oven under Rs 10,000 to consider amidst LPG gas crisis

The order further states that these families are not allowed to refill LPG cylinder in the companies that supply oil to the government or its distributors. This implies that those relying on piped gas are no longer supposed to rely on LPG cylinders.

No New LPG Connection

The Indian government has also issued another restriction, wherein established PNG customers are not eligible to get a new LPG connection. The intention is to lower the supplementary demand of LPG cylinders.

The authorities indicate that LPG cylinders must be supplied to households that are not equipped with piped gas. There are still places in India where LPG is the sole method of cooking.

Global Fuel Supply Crisis

The government decision comes in the midst of a global fuel supply crisis. The oil and gas shipments have been a problem due to the conflict in the Middle East. The shutdown of the Strait of Hormuz is one of the problems.

The Strait of Hormuz, serves as a major oil route in the world. This route has about 20 percent of the global supply of oil.

What It Means for India

India relies on imports to supply most of the LPG. Approximately 60 percent of the LPG requirement in the country is satisfied by imports. The majority of this fuel is supplied by Gulf nations, including Saudi Arabia and UAE.

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Oil and gas are exported to these countries via the Strait of Hormuz. Any interruption in this channel has an impact on the fuel supply in India. The new government regulation is aimed at controlling the supply of LPG in this case better.