LPG vs PNG: Which Is Better for Your Commercial Kitchen?
The LPG-vs-PNG decision is one of the most consequential infrastructure choices in any new or renovated commercial kitchen. Get it right and you lock in the best long-run cost structure for your brand. Get it wrong and you are either stuck with a location-limited fuel or paying a 30-40% premium forever. This post cuts through the marketing and delivers a practical head-to-head.
The basics
LPG (Liquefied Petroleum Gas): predominantly propane and butane, stored as liquid in pressurised cylinders or tanks, vaporised at the point of use. Portable, high energy density.
PNG (Piped Natural Gas): primarily methane delivered via underground pipeline from city gas distribution companies (IGL in Delhi, MGL in Mumbai, GGL in Gujarat, etc.). Always available, no storage at the user end.
Head-to-head: the five dimensions that matter
1. Per-unit fuel cost
PNG wins, typically by 25-35%. Exact spreads vary by city and by subsidised/unsubsidised LPG availability. In Delhi NCR (April 2026):
- LPG commercial (19 kg cylinder): ~₹92/kg
- PNG (commercial tariff): equivalent ~₹60-68/kg energy cost
Over a year, a restaurant consuming 100 kg/day (say ₹3.3 lakh on LPG monthly) would save ₹80,000-₹1,00,000 monthly on PNG.
2. Availability
LPG wins. PNG is available only in PNG-grid zones:
- Delhi NCR: most of central Delhi, Gurgaon, Noida, Ghaziabad — good coverage
- Mumbai: most of Mumbai proper, expanding in Navi Mumbai and Thane
- Gujarat: Ahmedabad, Surat, Vadodara, Rajkot — good coverage
- Other metros: variable — check your area code on the CGD company website
LPG works everywhere — from a Bengaluru outlet to a farm kitchen in Rajasthan.
3. Pressure / flame quality
LPG wins for high-BTU operations. LPG has ~2.5× the calorific value per cubic metre compared to PNG. Wok-style Chinese cooking, tandoor work, and deep-fat frying all prefer LPG's higher flame intensity. Modern PNG burners are engineered to compensate but some cuisines (hot-wok) specifically require LPG-class flame.
4. Installation cost
Similar for greenfield; PNG wins for retrofit if the line is already at your doorstep.
- LPG new installation: ₹60,000-₹3,00,000 depending on manifold size
- PNG new connection: ₹10,000-₹30,000 connection fee + in-kitchen distribution (₹40,000-₹1,50,000)
- PNG conversion of existing LPG kitchen: ₹15,000-₹60,000 (swap regulators, adjust burner orifices)
5. Operational overhead
PNG wins for operations. No cylinder handling, no refills, no storage space, no running-out-of-gas incidents. Monthly meter reading and billing. LPG requires a cylinder room, daily stock monitoring, and cylinder supplier relationship management.
Who should choose PNG
- Restaurants in confirmed PNG-grid zones
- Long-term lease locations (5+ years — connection fee amortises well)
- Operations where cylinder storage space is problematic (high-rent Mumbai, dense Delhi)
- Operators comfortable with supplier-pricing dependency
Who should choose LPG
- Any location without PNG grid
- Tandoor-heavy / Chinese-range-heavy cuisines needing high-BTU flame
- Short-term leases (under 3 years) where connection fee doesn't amortise
- Operations with wide cylinder-delivery supply redundancy (avoids single-supplier lock-in)
The hybrid approach
Some operators in PNG zones still maintain a 2-cylinder LPG backup. Reasons:
- PNG grid outages (rare but happen)
- Specific high-BTU applications (wok range)
- Operational continuity during PNG meter/regulator service
The backup typically costs ₹20,000-₹40,000 to set up and provides meaningful operational insurance.
Switching from LPG to PNG: practical steps
- Check PNG availability at your address (call IGL/MGL/GGL)
- Apply for connection (connection fee ₹10,000-₹30,000 typical)
- Meter installation by the CGD company (2-4 weeks lead time)
- In-kitchen burner orifice adjustment (mandatory — LPG and PNG use different orifice sizes). Our team handles this during the switch-over.
- Pressure test new in-kitchen distribution
- Commission and staff briefing
Frequently asked questions
Do my existing burners work on both LPG and PNG?
No — orifice size is different. Orifice swap takes 10-15 minutes per burner and costs ₹50-₹150 per orifice. Our team can do this during a PNG conversion.
What if the PNG grid comes to my area in future?
Any well-designed LPG kitchen can be converted to PNG in 1-2 working days — the in-kitchen distribution is mostly reusable; only the supply side changes.
Who sets PNG tariffs?
The local city gas distribution company, regulated by PNGRB (Petroleum and Natural Gas Regulatory Board). Tariffs adjust quarterly with input gas costs.
Get an LPG vs PNG feasibility report for your specific location or call +91-9891-282-705.