PNGRB proposes LPG portability, allowing users to switch suppliers

Unhappy with your LPG provider? Relief may be around the corner. In a move similar to mobile number portability, cooking gas consumers will soon be allowed to change their supplier without altering their existing connection, offering more choice and improved service.

Oil regulator PNGRB has invited stakeholder and consumer comments on the LPG Interoperability Framework.

The Petroleum and Natural Gas Regulatory Board (PNGRB), in the notice inviting comments, stated that in situations where a local distributor faces operational constraints, consumers often have limited alternatives, leading to hardship.

"There may be other reasons, too, and the consumer needs to have the freedom of choice on the LPG company/dealer, especially when the cylinder price is the same," it said.

The then UPA government had, in October 2013, launched a pilot Portability of LPG connections in 24 districts, covering 13 states, and extended it pan-India in January 2014, covering 480 districts.

However, unlike cellular services, where consumers have the option to switch between different mobile companies, LPG consumers were in 2014 allowed limited options of changing only their dealers, not the oil company.

What that meant was that a consumer of Indane Gas from Indian Oil Corporation had the option to choose from Indane Gas dealers in the vicinity. But, the consumer could not switch to Bharat Gas of Bharat Petroleum or HPGas of Hindustan Petroleum.

Inter-company portability was not legally possible at that time, as the law provided for an LPG cylinder belonging to a particular company to be submitted to only that company for refills.

PNGRB is now seeking to allow inter-company portability as well.

"To strengthen continuity of LPG supply and safeguard consumer trust, PNGRB invites views and suggestions from consumers, distributors, civil society organisations, and other stakeholders on measures that could facilitate timely access to refills - by enabling consumers to be served from the nearest available distributor through improved coordination and flexible delivery arrangements within the existing network, particularly during times of disruption," the regulator said.

PNGRB said India has achieved near-universal LPG household coverage with over 32 crore connections as of FY25.

"However, persistent consumer grievances remain over 17 lakhs annually," it added.

"While the oil marketing companies (OMCs) do strive to address the grievances, consumers do not have the option of migrating from one OMC/LPG dealer to another."  While interoperability has been adopted in telephony with much success, the same has not happened in the LPG sector.

"Recent reports from various regions have highlighted a number of cases of supply disruptions and prolonged delays in LPG refill deliveries, in some cases extending to several weeks. Such service interruptions have caused hardship to households and commercial establishments, particularly in areas where local distributors face suspension or operational constraints.

"These developments underscore the importance of adopting a continuity-centric approach to safeguard consumers against service failures and to ensure uninterrupted access to this essential fuel," PNGRB said.

In the 2014 scheme, the OMCs made more than 1,400 clusters, distributors in over 480 districts, with an average of almost 4 distributors per cluster to choose from. An LPG consumer in these markets could switch to the distributor of his/her choice within a cluster of LPG distributors in the vicinity under the LPG Connection Portability Scheme.

Once comments are received, PNGRB will frame rules and guidelines for LPG portability and fix a date for its rollout in the country. For now, comments have been invited by mid-October.