Government adds cheap gas allotment to spur new household piped-natural-gas connections
The government will give city gas distributors an extra 200 SCM of low-priced domestic gas for each new household piped-natural-gas connection added after a set threshold.
Starting September 1, the oil ministry approved a programme that awards city gas distribution companies an extra 200 SCM of cheaper domestic natural gas for each new billed household piped-natural-gas (PNG) connection that pushes regional totals above a defined limit. The measure is designed to accelerate the transition from LPG cylinders to piped gas, activate existing but unused connections, and extend pipelines into currently unserved zones.
By allowing distributors to replace part of the costlier LNG used for CNG transport with lower-priced APM gas, the policy is expected to reduce overall procurement costs and shorten the capital recovery period from about ten years to roughly three. The incentive will be rolled out in two six-month phases and complements broader efforts such as tax reductions, right-of-way reforms, and a digital platform for applications. The government views PNG as a cleaner, safer, and more convenient cooking fuel that can also lower indoor pollution and carbon emissions.
Why it matters
The incentive could make piped natural gas cheaper and faster to roll out, reducing reliance on LPG cylinders and lowering household energy costs.
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