The government has introduced a new incentive scheme aimed at expanding domestic Piped Natural Gas (PNG) connections across India. The scheme, which came into effect on September 1, 2026, is designed to encourage more households to switch to piped cooking gas and make PNG connections more widely available.

According to the Ministry of Petroleum and Natural Gas, India already had around 1.74 crore domestic PNG connections as of August 18, 2026. The new initiative is intended to accelerate the addition of active and billed household connections.

What Is the New PNG Scheme?

The Incentive Scheme for Promotion of Domestic PNG Connections was launched on August 18 and became effective from September 1.

Under the scheme, incentives will be provided to City Gas Distribution (CGD) entities for converting inactive or unbilled domestic connections into active, billed connections. The scheme will also encourage expansion of PNG networks into areas where piped gas is not yet available.

The programme will operate in two tranches spread over six months.

How Could This Help Consumers?

The main objective is to make PNG connections available to more households and increase the use of piped cooking gas.

Unlike LPG cylinders, PNG is supplied directly to a household through a pipeline. This can eliminate the need to regularly book, receive and store cylinders.

The government also says that several states are being encouraged to reduce VAT on natural gas to 5%, which could help reduce the overall cost for consumers where the lower rate is implemented.

Government Incentive for New Connections

Under the scheme, CGD companies have been given connection-related targets for their respective geographical areas.

When an eligible entity adds domestic connections above the specified threshold during the performance period, it can receive additional allocations of domestically produced APM gas.

The additional gas allocation is intended to replace relatively more expensive LNG and support the expansion of domestic PNG supply.

A Single Portal for PNG Connections Is Also Planned

Another important development is the proposed unified PNG registration portal.

The government says a single-window digital platform is being developed through which consumers will be able to apply for and track new PNG connections more conveniently.

The initiative is expected to make the process more streamlined as PNG networks expand into additional areas.

What About Areas Without PNG Pipelines?

Households can only use domestic PNG where the required City Gas Distribution network has been developed.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has authorised CGD entities across 309 geographical areas covering the mainland of India. However, network availability and connection rollout can differ from one locality to another.

Therefore, consumers interested in PNG should check whether their locality is currently covered by an authorised gas distribution company.

What Should Consumers Do Now?

If PNG is available in your area, you can check with the authorised City Gas Distribution company about new domestic connections, installation charges, documentation and applicable gas tariffs.

Consumers should also compare the applicable PNG charges in their area with their current cooking-fuel expenses before switching.

With the government now providing incentives to accelerate domestic PNG connections, more households could see piped cooking gas become available as the network expands.