India to Roll Out Piped Gas Incentive Scheme From September 1 to Ease Iran War Driven LPG Cost Surge

India's government has approved an Incentive Scheme for Promotion of Domestic PNG Connections, effective from September 1, 2026 (10 Shahrivar 1405), aimed at fast tracking the expansion of piped natural gas (PNG) connections in Indian households, as the cost of importing liquefied petroleum gas (LPG) has soared since the Iran war cut off part of Middle East supply.

According to Oilprice.com, published Tuesday, 26 Mordad 1405 (August 18, 2026), about 60% of Indian households rely on LPG for cooking, and before the war 90% of India's LPG imports passed through the Strait of Hormuz, so the route's disruption has directly pressured Indian consumers. Under the new scheme, city gas distributors will be allocated an additional 200 standard cubic meters of cheaper, domestically produced gas for every incremental PNG connection, to substitute costlier imported LNG. The scheme will run in two tranches over six months.