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Amid Cooking Gas Crunch, Govt to Incentivize States for Promoting PNG Adoption

The central government offers up to 30% more commercial LPG to states meeting reforms that speed up piped natural gas rollout amid a 55% LPG supply shortfall, officials said.

  • On Wednesday, the Centre announced it would increase commercial LPG allocation to states by up to 30% if they expedite piped natural gas infrastructure and approvals, aiming to ease supply pressures caused by West Asia tensions.
  • India's LPG supplies remain strained because the Strait of Hormuz closure has disrupted maritime traffic; the country imports 60% of its consumption, with 90% typically flowing through this critical chokepoint.
  • Petroleum Ministry Joint Secretary Sujata Sharma explained the tiered structure: states earn 1% for forming approval committees, 2% for granting deemed permissions, 3% for introducing "dig and restore" schemes, and 4% for reducing annual lease charges for city gas distributors.
  • Oil marketing companies conducted more than 2300 surprise inspections on Tuesday, while 30 states established state control rooms and nearly 7,200 tonnes of commercial LPG were distributed across the country in four days.
  • Petroleum Secretary Neeraj Mittal urged local bodies to minimize high digging and lease charges on city gas distributors to improve the investment climate and accelerate PNG adoption as a substitute for scarce LPG.
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The Hindu Business Line broke the news in New Delhi, India on Wednesday, March 18, 2026.
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