PNG push sputters in Chandigarh, UT plans VAT cut to 5% | Chandigarh News


PNG push sputters in Chandigarh, UT plans VAT cut to 5%
As PNG adoption sputters, Chd plans VAT cut from 12% to 5%

Chandigarh: The city’s push to wean households off LPG and shift them to piped natural gas (PNG) has made little headway, with just one in five targeted households opting for the fuel.The UT administration now plans to slash VAT on PNG from 12% to 5% to make the cleaner cooking fuel more affordable and boost adoption.Data placed before Parliament shows Chandigarh had only 34,175 domestic PNG connections as on May 31, 2026, against a target of 1.7 lakh connections. In contrast, the city has nearly 3.08 lakh LPG connections. The figures highlight the uphill task before the administration.A UT official said the proposed tax cut would significantly reduce the cost of PNG for consumers and could help accelerate the shift from LPG.Network ready, consumers slow to switchPNG was introduced in Chandigarh in 2016 by Indian Oil-Adani Gas Pvt Ltd (IOAGPL). Its pipeline network now covers several areas, including sectors 32-38, 40-51, Industrial Area Phases I and II and Manimajra — around 30% of the city.Despite infrastructure being in place for years, consumer uptake has remained limited. The administration has now intensified efforts through door-to-door awareness drives, registration camps in group housing societies and coordination with resident welfare associations.The food and supplies department has been directed to organise two camps daily in housing societies to facilitate on-the-spot registrations and address residents’ concerns.No cylinders, booking hasslesOfficials are pitching PNG as a more convenient alternative to LPG, with uninterrupted supply through pipelines eliminating the need to book, transport and replace cylinders.PNG also operates at lower pressure and, being lighter than air, disperses faster in case of a leak. The absence of bulky cylinders is another advantage, particularly for elderly residents and apartment dwellers.The administration is also targeting hotels, restaurants and other commercial establishments, where higher fuel consumption could make the switch more significant.With the proposed VAT cut and intensified outreach, the UT administration is hoping to bridge the wide gap between its ambitious PNG target and the city’s current consumer base.Slow on uptake–Chandigarh has achieved only 34,175 domestic PNG connections against a target of 1.7 lakh households, with LPG continuing to dominate at 3.08 lakh connections–To boost adoption of piped natural gas, UT plans to cut VAT from 12% to 5%, making PNG cheaper for consumers–Despite PNG infrastructure covering about 30% of the city, including several sectors, Industrial Area and Manimajra, consumer response has remained limited–The administration has launched door-to-door awareness campaigns, registration camps and RWA outreach to encourage households to switch from LPG–Officials are promoting PNG as a safer and more convenient alternative, offering uninterrupted supply without cylinder booking, storage or replacement hasslesPNG vs LPG: At a glancePNG — Pros–Continuous supply through pipelines; no cylinder booking or replacement–No bulky cylinders to store or handle–Lighter than air, so leaked gas disperses faster–Convenient for elderly residents and apartment dwellersPNG — Cons–Available only in areas covered by the pipeline network–Initial connection/conversion may involve a cost–Consumer adoption remains low despite years of availabilityLPG — Pros–Widely available across Chandigarh–Existing connections and cooking setups mean no switch is needed–Easy to use even in areas without PNG pipelinesLPG — Cons–Cylinders need to be booked, delivered and replaced–Cylinders require storage space and handling–LPG is heavier than air and can accumulate near the floor in case of a leak



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