Daijiworld Media Network – New Delhi
New Delhi, Jul 23: The Union government has said it has succeeded in keeping piped natural gas (PNG) prices for households relatively stable and affordable despite a rise in global liquefied natural gas (LNG) prices triggered by the Middle East crisis.
In a written reply to a starred question in the Lok Sabha, the Ministry of Petroleum and Natural Gas said the measures taken by the government had helped shield domestic consumers from the impact of higher international LNG prices.
The ministry said domestic PNG continues to receive administered-price natural gas, capped at USD 7 per MMBtu for the financial year 2026-27. It added that since the third quarter of FY2023-24, the government has been allocating domestic natural gas equivalent to 105 per cent of the previous quarter's actual PNG consumption to support the expansion of household PNG connections.
The government also stated that household PNG was included among the priority sectors for gas allocation under the temporary Natural Gas (Supply Regulation) Order, 2026, along with compressed natural gas (CNG), liquefied petroleum gas (LPG) production and fertiliser, to ensure continuity of essential services, energy security and public welfare. The order was later withdrawn after the supply situation improved.
Clarifying the pricing mechanism, the ministry said that although PNG offers the convenience of pipeline supply, its cost competitiveness compared to LPG varies across locations. It noted that retail prices depend on several factors, including gas procurement costs, transportation charges, state taxes, subsidies and distribution expenses.
On the expansion of the city gas distribution network, the ministry said entities authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) have been permitted to develop networks across 309 geographical areas covering 683 districts. As of May 31, 2026, more than 1.70 crore domestic PNG connections had been provided, while 6.71 lakh inch-km of pipeline had been laid.
The ministry further said the National PNG Drive 2.0 has introduced digital registration, simplified connection procedures and consumer outreach programmes to encourage new household PNG connections.
However, while the question sought to know whether the government had prepared a roadmap to connect an additional 1.2 crore households to the PNG network by March 2027, the ministry did not explicitly confirm such a target. Instead, it highlighted the ongoing implementation of the National PNG Drive 2.0, expansion of infrastructure, regular monitoring of city gas distribution projects and review meetings with implementing agencies and state governments.
The clarification was issued in response to a question raised by Members of Parliament during the ongoing Monsoon Session of Parliament.