What are PNG, CNG, LPG, and LNG? Amid Iran war, why are these gases in discussion and is India heading towards a shortage?

All of these four fuels are gases that are utilized broadly throughout the energy and fuels markets

LPG Shortage: Govt urges people to avoid booking cylinders under panic; key details inside — Representational Image

Amid the escalating Iran-Israel conflict, rumours have been circulating on social media platforms over the PNG, CNG, LPG shortage and LNG crisis. In several areas of India, numerous hotels and restaurants have shut down, while some of the eateries have trimmed menus and raised prices due to a severe shortage of commercial LPG cylinders. The consequences of this situation could have enormous implications for India. Additionally, numerous factories are expected to close due to a shortage of LNG.

So, what are these fuels? What distinguishes them from each other? Are all of these fuels imported? Why is their shortage affecting India so severely? The main fuels for discussion in this article are Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG), Compressed Natural Gas (CNG), and Natural Gas (PNG).

All of these four fuels are gases that are utilized broadly throughout the energy and fuels markets. Without these fuels, our lives would be very difficult; all four are hydrocarbons; however, there are many differences among the four hydrocarbons. They exist in different states and can be used in different ways. The manner in which these fuel types enter India and are supplied to India is also very different for each fuel type. The four types of fuel under consideration are liquefied petroleum gas (LPG), liquefied natural gas (LNG), compressed natural gas (CNG), and piped natural gas (PNG). It is also important to note that LPG is produced during the refining of crude oil. On the other hand, CNG and PNG largely depend on LNG, because natural gas imported as LNG is processed and then supplied in compressed or piped form for vehicles and households.

This product is known as Liquefied Petroleum Gas or LPG. It is even referred to as cooking gas. LPG consists primarily of propane and butane and can be stored as liquid under high pressure in cylinders for easy transportation. As part of crude oil refining and natural gas processing, LPG occurs naturally, but it is also produced during the process of refining or processing these fossil fuels. In India, LPG is used by the majority of families for cooking, with almost all kitchens regulated to use LPG for cooking purposes. India imports about 60 percent of its LPG consumption and out of these imports about 90 percent come through the Strait of Hormuz, which has been impacted due to current happenings.

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As on March 1, 2025, the total number of active domestic LPG consumers in India stands at 32.94 crore, including 10.33 crore beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY).

CNG stands for Compressed Natural Gas (CNG). It is a type of fuel made from compressed natural gas and is primarily composed of methane. The main characteristic of CNG is that, even after being compressed, it will always remain in a gaseous state. CNG is typically used as a fuel source for vehicles and is generally considered “cleaner” and produces “less pollution” than many other fuels. “CNG is an alternate fuel to Petrol, Diesel and Auto LPG. Economic benefits come along when users switch over to CNG, besides of course contributing to a greener, cleaner environment,” reads the statement on the Indian Oil website.

CNG price in India is lower than other liquid fuels
CNG is a clean fuel because of its low CO2 emissions as compared to diesel and petrol.
The operating cost of CNG vehicles is comparatively lower than vehicles running on other fuels.

PNG refers to Pipelines for Natural Gas (PNG). It is mainly Methane in composition. Unlike other forms, it is supplied directly to homes and industries through pipelines. It is lighter than air and can be used for cooking, heating, and is used greatly in small industries too. As of March 2026 the number of PNG consumers in India has reached approximately 15 million (1.5 crore) households, mainly available in metropolitan cities and large cities where consumers receive PNG through the City Gas Distribution network. The number of consumers of PNG continues to expand significantly. The government’s target is to provide a network to 125 million (12.5 crore) households by 2032. Presently, there are no national or regional shortages of PNG available for distribution, and local authorities are closely following the flow of global supplies of natural gas in relation to recent global tensions. Compared with LPG, PNG is deemed a safer and more convenient energy source, but the slow development of pipeline infrastructure currently restricts access to PNG supplies.