LPG To PNG Conversion: Cost, Process, Savings And Benefits
In India, most people have used LPG (Liquid Petroleum Gas) for cooking for many decades. This is fuel that powered many kitchens for cooking food. However, the LPG prices are rising constantly.
As of now, one LPG cylinder costs around INR 1,000 to 1,200 per month. The inconvenience in booking refills and running out of LPG unexpectedly are other major problems people face while using it.
This is why people are switching to PNG (Piped Natural Gas). It is a natural gas delivered directly into the kitchen through the pipeline, and this is why they are a hassle-free supply.
If you are also wondering about switching from LPG to PNG? Know more about LPG to PNG conversion with cost, process and savings explained.
What Does LPG To PNG Conversion Mean?
LPG to PNG conversion means replacing your traditional LPG cylinder setup with a natural gas pipeline called PNG.
This requires a small modification in your kitchen and a connection from a local gas distribution company.
The Difference Between LPG And PNG
- LPG - It stands for liquid petroleum gas, where liquid gas is stored under pressure in cylinders. LPG is delivered periodically to the residence via booking.
- PNG - It stands for piped natural gas that is supplied through pipelines. PNG is used in gas form and is primarily methane-based gas.
How The Conversion Process Works ?
The conversion process involves a few steps. The entire process takes 7 to 30 days, depending on the area availability.
- Apply with your local gas provider like IGL OR MGL.
- The gas provider will do a site inspection and feasibility check.
- Pipeline installation forms the main line to the kitchen stove. The Meter and regulator are also installed.
- The technician will modify your existing stove by replacing the burner jet with a wider nozzle.
- A pressure check and safety audit are performed to ensure no leakage before starting the gas supply.
Cost Of LPG To PNG Conversion
The initial investment of the PNG is moderate. It usually recovered over time through the lower monthly costs. The few types of charges included in the LPG to PNG conversion are
1. Installation Charges
The installation charges in the conversion typically range between INR 5,000 and INR 8,000. This includes the pipeline step-up, fittings and labour charges as well.
2. Security Deposit
The security deposit that is taken is around INR 2,000 to INR 6,000, which is refundable. This security deposit amount depends on gas providers and regions.
3. Monthly Billing Structure
The PNG bill is based on the total consumption every month. The rate is INR 35-INR 55 per SCM in metro cities. There is no upfront bulk expense like in the LPG cylinder.
Factors | LPG (Monthly) | PNG (Monthly) |
Average Usage | 1 cylinder | 20-25 SCM |
Cost per unit | INR 900-INR 1,000 | INR 40-50/SCM |
Monthly Expense | INR 900-INR 1,000 | INR 700-INR 1,000 |
Billing Type | Lump sum | Metered |
Supply | Limited | Continuous |
Benefits Of Switching To PNG
Switching to PNG is not only about cost but convenience as well. Here are some benefits of the household PNG connection.
1. Continuous Supply
The biggest advantage of the PNG is no more last-minute cylinder booking and waiting. It ensures an uninterrupted cooking even during peak usage because the supply is continuous.
2. Better Safety
When it comes to safety, PNG is lighter than air, so it disperses quickly. It has a lower explosion risk compared to LPG. PNG is equipped with a leak detection system to avoid any hazards.
3. Lower long-term cost
PNG has an initial step-up cost, but overall, it is way cheaper than LPG. It is 20 to 30% cheaper than LPG because of controlled usage and no delivery charges.
Expense Ratio And Taxation
Before switching to the PNG from LPG, there are a few aspects that one should evaluate before making the decision.
- Area Availability
PNG is currently available mainly in the metro or tier 1 towns under the government gas distribution (CGD) network expansion. The PNG is not available in the village and rural areas yet. However, the expansion of the pipeline is going on.
- Appliance Compatibility
You cannot use an ordinary LPG stove without modifying it to use PNG. A minor nozzle adjustment is required in the kitchen stove to use PNG. This is done by an authorised technician, which costs extra.
- Society Permissions
You cannot switch to PNG without permission. An apartment resident may need approval from the housing society. However, some buildings have a pre-installed PNG pipeline. An official approval is also needed from CGD for independent conversion.
Conclusion
The price of LPG cylinders is increasing day by day, and there are safety concerns as well. This is why many people in India are switching to PNG. Switching from LPG to PNG is a lifestyle decision which is a safe and smart move. PNG is also cost-effective compared to LPG. By this, you can save money and invest it somewhere better.
For long-term investments like SIPs or mutual funds, you can check out this platform for Grip Invest It has many investment options for beginners and experienced investors as well.
FAQs On LPG To PNG Conversion
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Author: Grip Invest Editorial Team The Grip Invest Editorial Team is a group of Chartered Accountants, MBA (Finance) graduates, and Qualified Research Analysts dedicated to helping you invest smarter. We dive deep into India's fixed income landscape to deliver content that is accurate, up-to-date, and easy to understand. Whether you're exploring bonds, fixed deposits, or other fixed income opportunities, our guides cut through the noise and give you the clarity to make better financial decisions. |
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