India is addressing a cooking gas shortage caused by the Iran war by improving its local distribution network and accelerating the transition to piped gas. This strategy aims to reduce reliance on liquefied petroleum gas (LPG) imports and lower government subsidy expenditures. The government has invoked emergency powers to prioritize LPG supplies strictly for household use and plans to discontinue LPG deliveries after three months for consumers who have access to piped gas connections.
In a recent directive, India set deadlines for approving new pipeline projects, with automatic approval granted if authorities do not respond within the stipulated time. Additionally, landowners and local officials are mandated to permit pipeline access to facilitate infrastructure expansion. Neeraj Mittal, secretary of the Ministry of Petroleum and Natural Gas, highlighted the rapid growth of the city gas distribution (CGD) network nationwide, describing the crisis as an opportunity for progress.
In March, India connected 580,000 new households to its piped gas network, a significant increase from 342,300 added the previous year. As the world’s second-largest LPG importer, India fulfills approximately 60% of its LPG demand through overseas purchases, importing around 22 million metric tons in 2025, primarily from the Middle East, at a cost nearing $12 billion.
The LPG supply disruptions have exposed the vulnerabilities of India’s import-dependent energy system, prompting government measures to better manage supply and demand. Credit-rating agency ICRA’s Prashant Vashist projected that India’s LPG imports could decrease by 10% to 15% by 2030 due to these initiatives, including the expansion of piped gas infrastructure. India currently imports half of its natural gas consumption as liquefied natural gas (LNG).
Transitioning consumers to piped natural gas, which is sold closer to market prices, is expected to reduce revenue losses for companies selling subsidized LPG and ease the government’s subsidy burden. Currently, LPG is sold to commercial users at market rates, while household cooking fuel is subsidized by about 56%, costing the government $3.4 billion in retailer compensation last year.
Since the onset of the conflict, suppliers such as Indraprastha Gas, Mahanagar Gas, GAIL Gas, and Bharat Petroleum Corp have introduced incentives like reduced installation fees for piped gas connections. India has 333.7 million household LPG customers, including 106 million low-income families receiving subsidized gas. Local suppliers have been adding 2 to 2.5 million new connections annually, reaching 16.3 million by December.
Recent policy changes are expected to accelerate this growth to approximately 7.5 million new connections per year. Gajendra Singh, former member of the Petroleum and Natural Gas Regulatory Board, estimates that the total number of piped gas connections could reach between 35 million and 40 million by 2030. This expansion is anticipated to reduce LPG imports significantly while providing households with a safer and more convenient energy alternative.
