India adds LPG users, pipelines and EV chargers in 2025

India’s oil and natural gas sector registered additional gains in access to fuels, gas infrastructure and alternative fuels during 2025, according to year-end data released by the Ministry of Petroleum and Natural Gas. While headline figures point to steady expansion, analysts say challenges related to sustainable use, dependence on subsidies and exposure to imports remain unresolved.

Under the Pradhan Mantri Ujjwala Yojana (PMUY), the number of LPG beneficiaries has increased to around 10.35 lakh crore as of December 1, 2025. To address the pending demand, the government has approved 25 lakh additional LPG connections for FY26 and simplified eligibility rules by moving to a single disenfranchisement declaration.

However, high access has not fully translated into consistent usage. Average LPG consumption rose from about three refills per household in FY2020 to 4.47 refills in FY2025, with a pro rata estimate of 4.85 refills in FY2026 – still below levels seen as sufficient for a full fuel switch. To support affordability, PMUY beneficiaries continue to receive a subsidy of INR 300 per cylinder for up to nine refills per year, making financial support pivotal in the adoption process.

The ministry also pushed for rationalization of support through Aadhaar biometric authentication, covering 71% of PMUY consumers and 62% of non-PMUY users by December 2025. A nationwide mobile-based authentication campaign was launched to reduce duplication and leakages.

The fuel retail infrastructure gradually expanded. More than 90,000 retail outlets have been enabled through digital payments, supported by 2.71 lakh point-of-sale terminals, while more than 3,200 fuel delivery vehicles have been deployed to improve access to remote areas.

Electric mobility infrastructure has been expanded mainly through oil marketing companies. Under FAME-II, 8,932 electric vehicle charging stations have been installed at gas stations, while OMCs have added more than 18,500 chargers from in-house resources. Public sector operations management companies are also developing 4,000 integrated “power plants” between FY25 and FY29; 1,064 stations are in operation as of November 2025.

In the natural gas field, the length of operational pipelines has increased to 25,429 km by June 2025, with another 10,459 km under construction. The implementation of the Uniform Pipeline Tariff has covered approximately 90% of operating pipelines, reducing transportation costs for distant markets but reshaping revenue structures for operators.

The city’s gas distribution coverage has expanded to 307 geographies, with PNG connections reaching 1.57 lakh crore and CNG terminals crossing 8,400 by September 2025. Revised gas distribution guidelines have been introduced to better align supply with demand, although exposure to volatile LNG prices remains a concern.

Alternative fuels have made progress from a low base. Over 130 CNG plants have been commissioned under the SATAT initiative, and mandatory blending of CNG into CNG and PNG began in FY26. Ethanol blends averaged 19.24% in ESY 2024-25, closing in on the 20% target, with government estimates pegging cumulative foreign exchange savings at over Rs 1.55 lakh crore.

Upstream reforms included enactment of the Oilfields (Regulation and Development) Amendment Act 2025 and awarding 172 exploration blocks with committed investments amounting to approximately $4.36 billion, although gains in production are only expected in the medium term.