PNG vs LPG: What are the differences? Which is more affordable and offers uninterrupted supply? FAQs answered

With the West Asia war impacting fuel supplies across the globe, the debate over whether liquified petroleum gas (LPG) or piped natural gas (PNG) is better for the Indian consumer has dominated headlines of late.

On 12 April, the Ministry of Petroleum and Natural Gas noted in a statement that a government order providing a streamlined framework for laying and expanding PNG pipelines has been notified. It added that the Natural Gas and Petroleum Products Distribution Order, 2026, will “accelerate PNG network growth, enhance last-mile connectivity” and strengthen energy security for the country.

Earlier, on 24 March, the Centre had mandated domestic LPG cylinder users to switch to PNG connection at the next available slot, and barred PNG-connected users from buying cylinders, refills, or obtaining a domestic LPG connection. Further, customers who receive notice of PNG availability but fail to switch within 90 days (three months) will have their LPG connection invalidated.

Against this backdrop, we take a look at the differences between PNG and LNG, which is more affordable and offers an uninterrupted supply.

LPG vs PNG: What are the differences?

LPG is a cooking gas used widely in India. It is composed mainly of propane and butane and is supplied in liquefied form in cylinders. There are two types of LPG cylinders — domestic (14.2 kg) and commercial (19 kg). LPG is made during the refining process of crude oil or extracted during the processing of natural gas.

PNG consists primarily of Methane gas (CH4) and other higher hydrocarbons in small percentages. It is supplied through pipelines across many parts of the country. However, not all parts of India have PNG connections. PNG is procured from the oil/gas wells and transported through a network of pipelines.

LPG is supplied in liquid form in cylinders, whereas PNG is supplied through a gas pipeline.

LPG vs PNG: Which is more affordable?

When comparing the costs of LPG and PNG, it is important to remember that fuel prices differ across states in India due to additional local duties.

However, across many states, PNG prices are lower when compared to LPG cylinder costs on a per-unit basis. This is because consumers with PNG connections have a metre attached to the pipeline in their home, similar to an electric metre box, which measures your consumption over a two-month period and then allows the distributor to charge you based on your personal usage. For LPG users, however, most people purchase the entire 14.2 kg cylinder regardless of their personal use.

Further, LPG also has attached costs per month/bi-monthly for the transportation and delivery of cylinders to your home from the city cylinder distribution. Notably, PNG users are charged a refundable security deposit of ₹5,000-7,000 as upfront cost.

Overall, based on unit use and cost averages, PNG is much more affordable for most consumers. See illustration below:

LPG vs PNG: Which offers uninterrupted supply?

India has more than 33.2 crore active LPG connections, including more than 10 crore under the Pradhan Mantri Ujjwala Yojana (PMUY). In comparison, PNG coverage is much lower near 1.36 crore domestic connections as of 2024-end. This means LPG is more accessible to consumers across India.

However, with the Middle East conflict hurting supply schedules, the government's 25-day inter-booking interval for 14.2 kg cylinders has increased the gap compared to the previous 21-day cycle. This means households have to plan their bookings and usage accurately, so that they don't run out before the booking period.

Conversely, PNG connections have seen little to no impact from the shortage because the flow is directly to your kitchen, removing last-mile delivery as a factor. Further, unlike LPG, which sees around 60% imports to meet domestic demand (90% through the war-impacted Strait of Hormuz), India produces 50% of its own natural gas. Further, amid the war, the Centre has mandated that the domestic PNG sector gets 100% allocation by diverting supply from non-essential sectors.

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