E-Paper
Sign In
Explainer: LPG vs PNG and why India has LPG crisis amid Middle East conflict
India imports 60 per cent of its LPG requirement, and 90 per cent of it passes through the Strait of Hormuz; supply chain disruptions led to shortages and rising prices
- PUBLISHED: Fri 27 Mar 2026, 8:00 AM
[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]
One of the worst impacts from the US-Israel-Iran war on India has been the sudden fall in liquefied petroleum gas (LPG) imports into the country. India imports 60 per cent of its LPG requirement and 90 per cent of it passes through the Strait of Hormuz.
Recommended For You
LPG is used by over 330 million Indian consumers for their daily cooking needs. But India also has access to piped natural gas (PNG), and the government is now pushing millions of urban consumers to switch over to piped gas.
We take a look at the LPG/PNG concepts and how they have evolved in India over the past few decades:
Stay up to date with the latest news. Follow KT on WhatsApp channels.
What is the difference between LPG and PNG?
LPG is stored in cylinders and is distributed to 330 million consumers through a vast network of dealers, who deliver the cylinders to their homes. Many consumers also pick up the cylinders (many dangerously on two-wheelers) from the local distributors. India is the world’s second-largest consumer of LPG.
PNG is a natural gas piped directly into the homes of consumers. But only about 16 million consumers are linked to PNG supplies in India at present.
PNG is supplied through an underground pipeline network and comes directly to the homes of consumers. It was first introduced in 1987, when the 1,750-km-long Hazira-Vijapur-Jagdishpur pipeline launched clean energy usage, initially for industrial purposes. In 1998, consumers in Delhi began to access PNG for domestic use.
What are they composed of?
LPG consists of propane and butane, stored in liquid form and under pressure in cylinders. PNG is mostly methane and supplied through pipelines. Methane is seen as an environmentally-friendly option, as most of it burns.
What is the consumption pattern?
The Indian government has been aggressively promoting the use of PNG (setting a target of over 125 million connections by 2034), to strengthen energy security and reduce reliance on imported fuel for domestic purposes.
What is India’s natural gas consumption?
The country consumes nearly 190 MMSCMD (million metric standard cubic meters per day), of which about half is produced domestically.
How are the two gases stored?
LPG is stored in cylinders at home, while methane, the main content of PNG is supplied directly to homes.
How are they delivered to consumers?
LPG is made of propane and butane, and is stored as pressurised liquid. PNG is delivered through underground pipelines. LPG cylinders are transported on roads, whereas PNG is directly linked to homes like water pipes.
Which of the two is a simpler product?
LPG involves storing in cylinders, transporting in trucks, bottling plants and dealers, while PNG has a simpler supply chain as it directly reaches the kitchens of consumers through an underground network.
What is the difference in price for the consumer?
LPG is more expensive; PNG is cheaper by 30 to 40 per cent.
How popular are the two among consumers?
LPG is used in remote areas or small villages and towns, where laying pipelines can be a challenge. Most PNG consumers are residents of metros, state capitals and major cities who access it with ease.
Why is there an LPG crisis?
India is experiencing an LPG shortage due to the disruption in delivery from the Middle East because of the closure of the Strait of Hormuz caused by the US-Israel-Iran war.
