LPG new rule: You may lose your subsidy from October 1 (Pic Credit: AI)
Biometric Aadhaar Authentication will be mandatory for domestic LPG consumers to get subsidised cylinder refill from October 1, 2026. Petroleum and Natural Gas Ministry said that consumers who have already completed the process do not need to take any further action. As of September 19 about 27.43 crore active domestic LPG consumers, or 89.9%, had completed Aadhaar authentication. Consumers who have not completed the process can get LPG cylinders, but have to pay the market price instead of getting the subsidy.
Who needs to complete Aadhaar authentication?
The new requirement applies to domestic LPG consumers who want to book subsidised cylinder refill at regulated prices. The government has said the step is aiming to make sure that the LPG subsidy gets to eligible households.
Consumers who have completed Biometric Aadhaar Authentication do not need to repeat the process. The ministry said a large majority of domestic LPG users had already completed the authentication.
Those who have not completed it yet have time to do it before the new requirement begins on October 1. If they choose not to complete it, they can continue to receive LPG cylinders, but without subsidy.
How can LPG consumers complete the process?
Consumers have several options to complete Biometric Aadhaar Authentication. The process can be completed during LPG cylinder delivery or by visiting the showroom of their LPG distributor.
Customers can also complete the process through the mobile applications of their respective oil marketing companies. Indane customers can use the IndianOil ONE app, Bharatgas customers can use HelloBPCL and HP Gas customers can use the HP PAY app.
Consumers who do not want to complete Aadhaar Authentication can register their choice in the digital channels provided by their oil marketing company.
What happens if consumers do not authenticate?
Consumers who do not complete the process will still be able to receive LPG cylinders, according to government. However, they will have to pay applicable market price and will not get the subsidy.
They can also continue to receive 5-kg or 10-kg cylinders as local availability allows. The government said the new system is also aimed at preventing domestic LPG cylinders from getting diverted for commercial and industrial use.
How much LPG subsidy is available?
The government currently sells domestic LPG below its cost. The implicit subsidy for September 2026 is around Rs 210 per 14.2-kg cylinder. This was around Rs 721 in June, showing a sharp fall in the subsidy over the period.
The government said it had paid oil marketing companies Rs 22,000 crore as compensation during FY23. It will be paying another Rs 30,000 crore in FY26 and FY27.
The accumulated under-recoveries of oil marketing companies on domestic LPG had crossed Rs 62,000 crore as of August 31, 2026. The Aadhaar authentication requirement is part of the government's effort to make sure that subsidised LPG gets to eligible domestic consumers while reducing misuse of domestic cylinders.
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