New Delhi, India — April 4, 2026
The Delhi government has introduced stricter regulations for commercial LPG usage, mandating businesses and industrial units to apply for piped natural gas (PNG) connections to continue receiving LPG supply.
The revised directive, issued on April 2 by the Department of Food, Supplies, and Consumer Affairs, is part of an amendment to the city’s commercial LPG distribution policy. The move is aimed at promoting cleaner energy adoption and streamlining gas distribution across the capital.
PNG Connection Now Mandatory in Covered Areas
Under the updated rules, businesses located in areas where PNG infrastructure is already available will only be eligible for commercial LPG supply if they either have an active PNG connection or have formally applied for one.
This effectively makes PNG adoption a prerequisite for continued access to LPG cylinders in commercial and industrial operations.
Compliance Requirements for Businesses
The new policy outlines clear eligibility criteria:
- Businesses must be registered with authorized oil marketing companies (OMCs)
- Proof of PNG application or connection is mandatory where pipeline networks exist
- In areas without PNG infrastructure, businesses must submit a formal declaration stating their intent to switch once the network becomes available
Officials said the move is designed to ensure a gradual but firm transition toward cleaner fuel systems.
Role of Oil Companies and Indraprastha Gas Limited
Oil marketing companies have been assigned key responsibilities in implementing the policy. They will be required to verify documents from commercial consumers at least once to ensure compliance.
Additionally, data of businesses expressing willingness to switch to PNG will be shared with Indraprastha Gas Limited (IGL) for further processing and connection rollout.
Relief for Dual-Use Businesses
The government has also introduced flexibility for businesses that require both LPG and PNG for operational reasons.
Such users can submit a formal request explaining their dual fuel requirements to the Additional Commissioner. Oil companies may also forward these applications for faster approval.
According to the official order, authorities will review these cases in consultation with oil marketing companies to ensure timely decisions.
Policy Outlook
The latest directive builds upon the broader commercial LPG distribution policy notified earlier in March, with no changes to other provisions.
The move signals the Delhi government’s intent to accelerate the transition toward PNG in commercial and industrial sectors while regulating the use of traditional LPG cylinders more strictly.
Officials believe the policy will help improve fuel efficiency, reduce emissions, and bring greater transparency to gas distribution systems in the capital.
