LUCKNOW The accelerated rollout of piped natural gas (PNG) across Lucknow is triggering an unexpected fallout: an existential crisis for Liquefied Petroleum Gas (LPG) distributors. While the Centre’s push for piped cooking fuel is revolutionising household kitchens, local dealers warn that the transition is quietly dismantling a long-standing retail network and putting thousands of livelihoods at risk.
Over the past four months alone, nearly 10,000 domestic consumers in Lucknow have shifted from traditional cylinders to PNG. As a result, several gas agencies report a 20% decline in business since March. Distributors fear this downward trend will only accelerate as the underground pipeline network branches into new neighborhoods.
Lucknow currently has 117 LPG distributorships, the vast majority of which rely on domestic cylinder sales. Industry representatives estimate that if PNG achieves citywide coverage over the next five to six years, many of these agencies will become financially unviable, leading to severe downsizing or permanent closures.
The dealers’ primary grievance is a policy that requires consumers to surrender their LPG connection after opting for PNG. They have urged the government and oil marketing companies to withdraw this requirement, arguing that households should be allowed to retain LPG cylinders as a backup during emergencies, maintenance shutdowns or disruptions in PNG supply.
LPG distributors believe such a move would not only provide consumers with greater energy security but also cushion the financial blow to thousands of workers employed by the sector.
{{/usCountry}}LPG distributors believe such a move would not only provide consumers with greater energy security but also cushion the financial blow to thousands of workers employed by the sector.
{{/usCountry}}“We are not opposing PNG. It is a convenient fuel. Our concern is the survival of the LPG distribution network and the livelihoods attached to it,” said Jagdish Raj, president of the UP LPG Distributors Association.
“Agency owners from across Lucknow are approaching us with the same concern. One LPG distributorship provides direct and indirect employment to nearly 60 people, including delivery personnel, mechanics, office staff and transport workers. In Lucknow alone, 117 gas agencies support nearly 7,020 families. If the present trend continues without any policy intervention, these livelihoods will inevitably be affected,” he said.
Dealers also point out that despite the growing popularity of PNG, LPG continues to be an essential backup fuel during pipeline maintenance, technical faults and emergencies. Allowing consumers to retain both connections, they argue, would ensure uninterrupted cooking fuel supply.
Oil industry officials, however, defend the expansion of PNG as part of a broader national energy strategy.
Sanjay Bhandari, state head and executive director, Indian Oil Corporation (IOC), said the promotion of PNG connections is in line with the Centre’s policy to increase the use of domestically available natural gas.
“Expanding PNG is a policy decision of the central government. It is beneficial for the country because PNG is sourced largely from domestic natural gas, whereas LPG is substantially import-dependent. Increasing PNG usage strengthens India’s energy security and reduces dependence on imported fuel,” said Bhandari.
The shift has sparked a larger policy debate. While consumers stand to benefit from the convenience of uninterrupted piped gas and the country gains from lower import dependence, LPG distributors say the transition must be managed in a way that protects an established retail network supporting thousands of families.
As Lucknow moves towards a piped-gas future, the challenge for policymakers will be to balance cleaner energy goals with the economic realities faced by the city’s long-standing LPG distribution ecosystem.