Bill Calculations, Gas Costs and Checklists
PNG vs LPG cost in India - is piped gas cheaper than a cylinder?
Compare piped natural gas and LPG cylinders for home cooking: how PNG is billed per SCM, energy equivalence with a 14.2 kg cylinder, connection costs and safety.
Whether piped natural gas (PNG) is cheaper than an LPG cylinder depends on two numbers you can read off your own bills: the PNG price per standard cubic metre (SCM) charged by your city gas distribution (CGD) company, and the price you pay for a 14.2 kg LPG refill. As a rough guide, one kilogram of LPG carries about as much heat as 1.2 to 1.3 SCM of natural gas, so a 14.2 kg cylinder is roughly equivalent to 17 to 18 SCM of PNG. Multiply that by your PNG rate and compare with the cylinder price. PNG also removes cylinder booking and storage, but brings a connection deposit and a meter-reading bill. For PMUY households, the ₹300 targeted subsidy on LPG changes the comparison.
Part of electricity bill calculation worked examples.
How PNG is supplied and priced
| Point | Detail |
|---|---|
| Regulator | Petroleum and Natural Gas Regulatory Board (PNGRB), under the PNGRB Act, 2006, which authorises CGD companies for geographical areas |
| Supplier | The CGD company authorised for your area; for example, Indraprastha Gas in Delhi NCR and Mahanagar Gas in Mumbai |
| Unit | Standard cubic metre (SCM), read from a gas meter at your kitchen or outside the flat |
| Price | Set by the CGD company, revised from time to time; domestic PNG has priority access to domestically produced gas under government gas allocation policy |
| Tax | Natural gas is outside GST; state VAT applies, which varies by state |
| Billing | Usually every two months, payable online |
Because CGD prices and VAT vary, we do not quote a current PNG rate. Read it from your last bill or the CGD company's website.
Energy equivalence: the key conversion
LPG's heating value is roughly 11,000–12,000 kcal per kg; city natural gas is roughly 8,500–9,500 kcal per SCM. These are approximate typical values, not guaranteed figures for your supply. They give:
1 kg LPG ≈ 1.2–1.3 SCM PNG 14.2 kg cylinder ≈ 17–18 SCM PNG
Worked comparison (illustrative PNG rates)
LPG at the Delhi price of ₹942 per 14.2 kg (from 7 June 2026, still the price on 1 October 2026 per PPAC; check today's price). PNG rates below are illustrative, to show the method.
| PNG rate per SCM (illustrative) | Cost of 17.5 SCM (one cylinder's worth) | Versus LPG at ₹942 |
|---|---|---|
| ₹45 | ₹788 | About ₹155 cheaper per cylinder-equivalent |
| ₹50 | ₹875 | About ₹67 cheaper |
| ₹55 | ₹963 | About ₹21 dearer |
For a family using the equivalent of 8 cylinders a year (about 140 SCM), the difference at these illustrative rates ranges from about ₹1,240 cheaper to ₹160 dearer a year. Compared with a PMUY cylinder at about ₹642 effective, PNG at any of these rates costs more per unit of heat, but only for the subsidised refills (4 a year since June 2026); further refills cost the full ₹942.
Beyond the gas price
| Factor | PNG | LPG cylinder |
|---|---|---|
| Upfront cost | Connection deposit or registration charge, plus internal piping if needed | Cylinder and regulator deposit for a new connection; PMUY is deposit-free |
| Booking and delivery | None; continuous supply | Book refills, wait for delivery, store a spare |
| Running out | Rare; supply interruptions possible during maintenance | Cylinder can run out mid-cooking without a spare |
| Billing | Metered, bi-monthly; minimum charge may apply | Pay per refill |
| Subsidy | No DBTL; PMUY LPG subsidy does not carry over | DBTL for domestic; ₹300 targeted subsidy for PMUY |
| Safety | Lighter than air; leaks disperse upwards; regular inspection | Heavier than air; leaks collect at floor level; rubber hose and regulator checks needed |
| Space | No cylinder storage | Needs space for cylinders |
| Availability | Only where the CGD network is laid | Nationwide |
How to decide
- Check availability. Ask the CGD company whether your building is connected or planned.
- Get the numbers. PNG rate per SCM including VAT, deposit, any minimum charges, and the LPG price on your latest cash memo.
- Convert. Multiply the PNG rate by 17.5 and compare with one cylinder.
- Include convenience. If you often run out of gas or have nowhere to store a spare, PNG has value beyond the price.
- PMUY households: keep the LPG connection unless PNG is clearly cheaper after losing the subsidy.
- Surrendering LPG. If you switch, surrender the LPG connection at the distributor and collect your deposit refund with the subscription voucher. Holding both may not be permitted under the rules for domestic LPG in PNG-connected areas; ask your distributor.
Try your LPG figures in the cooking gas cost estimator, and see the LPG price guide and the PMUY guide.
What about induction cooking?
An induction hob moves cooking cost to the electricity bill. Those units are added on top of your other use and charged at your top slab. Illustrative: 40 units a month for induction cooking at a ₹6.50 top slab rate costs ₹260, plus surcharge and duty; at a ₹3.00 slab, ₹120. In a state where you are inside a free-power limit, induction may cost nothing extra until you cross it, after which the cost can jump. See free electricity schemes.
Frequently asked questions
Is PNG safer than LPG?
Both are safe when installed and maintained correctly. Natural gas is lighter than air and disperses upwards; LPG is heavier and can collect near the floor. Follow the supplier's safety guidance and report any gas smell immediately.
Can a tenant get PNG?
Usually yes, with the owner's consent for piping work. The connection is often registered in the owner's name; agree in writing who pays the deposit and how it is refunded.
Why is my PNG bill estimated?
If the meter was not read, the CGD company may bill on an average. Submit a self-reading with a photo where the company allows it.
Who regulates PNG complaints?
First the CGD company's grievance cell; PNGRB has regulations on service standards for CGD entities and its own complaint mechanism.
Sources and where to check
- Petroleum and Natural Gas Regulatory Board — CGD authorisation, service standards and complaints
- Ministry of Petroleum and Natural Gas — gas allocation policy and LPG policy
- Indraprastha Gas — PNG tariff for Delhi NCR
- Mahanagar Gas — PNG tariff for Mumbai region
