Delhi Government Requires PNG Connections for LPG Supply to Businesses

Original: Delhi mandates LPG supply to businesses only if they have PNG connection

Business Standard•Apr 4, 20262 min

In a Nutshell

The Delhi government has mandated that businesses must have or apply for a piped natural gas (PNG) connection to receive commercial LPG cylinders, as per a new order issued on April 2. This change aims to streamline energy supply and encourage the transition to cleaner energy sources in areas with existing PNG infrastructure.

Key Points

01Businesses must have or apply for a PNG connection to receive LPG.
02The order aims to promote cleaner energy usage in Delhi.
03Oil marketing companies (OMCs) will verify compliance with the new rules.
04Businesses needing both LPG and PNG can apply for special consideration.
05The policy amendment is part of a broader strategy to enhance energy efficiency.

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Full Summary

On April 2, the Delhi government issued a new order requiring businesses to either possess or apply for a piped natural gas (PNG) connection to qualify for commercial LPG cylinder supplies. This amendment to the distribution policy aims to promote cleaner energy sources where PNG infrastructure is available. Under the revised rules, commercial and industrial consumers must be registered with an oil marketing company (OMC) and demonstrate intent to switch to PNG if it is not currently accessible. OMCs are tasked with verifying compliance and maintaining records of businesses that intend to transition to PNG. Additionally, businesses that require both LPG and PNG can submit requests to the Additional Commissioner for special consideration. The rest of the policy, initially notified on March 26, remains unchanged.

Key Figures

April 2

Date of the new order issuance

March 26

Date of the initial policy notification

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Why It Matters

This regulation could lead to increased operational costs for businesses relying solely on LPG, as they will now need to transition to PNG for compliance. It encourages a shift towards cleaner energy, potentially benefiting the environment.

Who is affected

Businesses in Delhi that depend on LPG for their operations.

What to know

Businesses should assess their current energy supply needs and apply for PNG connections where available.

FAQ

The regulation aims to promote the use of cleaner energy sources by requiring businesses to switch to piped natural gas (PNG) where available.

They must submit an application indicating their intent to switch to PNG once it becomes available.

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