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    CGD Companies are Offering Attractive Incentives to Encourage Consumer


    Finance Outlook India Team | Tuesday, 17 March 2026

    To ease the strain on LPG supplies amid ongoing challenges, several city gas distribution (CGD) companies are offering attractive incentives to encourage consumers to switch to piped natural gas (PNG).

    Key Highlights:

    • CGD companies offer incentives like free gas and waived security deposits to encourage switching from LPG to PNG.
    • Government boosts LPG production and manages supply-demand balance with new measures.

    Earlier, the government outlined its efforts to mitigate the LPG crisis by increasing domestic LPG production by 36 percent compared to pre-West Asia conflict levels.

    Measures like diverting propane and butane to LPG production and extending waiting times for cylinder bookings have been implemented to curb hoarding. Despite these efforts, LPG bookings peaked recently, highlighting the persistent demand. The government continues to promote digital bookings to reduce panic buying at dealers.

    Now, these incentives include free gas worth Rs 500 for domestic users and the waiver of security deposits ranging from Rs 1 to 5 lakh for commercial users. Indraprastha Gas Ltd (IGL) in Delhi and Mahanagar Gas Ltd in Mumbai are among those offering these benefits. Other companies like GAIL and BPCL have also introduced similar promotions, aiming to reduce pressure on the LPG supply chain.

    Also Read: LPG Cylinder Shortage: Govt Assures100% Supply; Check City-Wise Prices

    These steps come as part of the broader strategy to maintain stable LPG and PNG supply while managing the crisis, with the Petroleum and Natural Gas Regulatory Board urging CGD companies to expand their outreach to provide connections where networks already exist.



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