Government Mandates Aadhaar Authentication for Subsidised LPG Refills from October 1, 2026

The Petroleum and Natural Gas Ministry has set a deadline of October 1. 2026, for domestic LPG consumers to complete Biometric Aadhaar Authentication (BAA) in order to book subsidized refills at regulated prices.

As of September 19, nearly nine out of ten active domestic LPG consumers had successfully completed the authentication process, leaving approximately 27.43 crore consumers who still need to do so.

Those who have not undergone BAA will be barred from receiving subsidized cylinders and will instead pay full market rate without the subsidy. However, they can still receive cylinders through the existing distribution network. The government aims to curb the diversion of domestic LPG cylinders for commercial and industrial use by ensuring that subsidised LPG benefits reach eligible households.

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The push to digitize LPG distribution followed a military conflict in West Asia earlier this year. Despite efforts, only around 21.7 lakh consumers who have access to a PNG network and are eligible to switch have converted to cleaner piped gas, which accounts for approximately 3.3 lakh of the total eligible users.

The government has provided significant compensation to oil marketing companies for their losses in FY23, amounting to Rs 210 crore. In addition, the ministry is paying Rs 30,000 crore in compensation in FY26 and FY27, with accumulated under-recoveries from domestic LPG crossing Rs 62,000 crore as of August 31, 2026.

Consumers seeking help with LPG-related services can contact the toll-free helpline at 1800 2333 555. Domestic LPG is sold at a price below its cost. And the government's efforts aim to ensure that this subsidy reaches those who need it most.

The conversion rate of eligible PNG users to cleaner piped gas remains low. With only around 20% of LPG consumers making the switch. This is despite the government's efforts to encourage a shift towards cleaner energy sources.

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The government's compensation package for oil marketing companies continues, with Rs 30,000 crore set aside in FY26 and FY27. This support aims to help companies recover from losses incurred during the transition to digitized LPG distribution.

The Natural Gas Regulatory Board (NGRB) plays a important step in regulating the natural gas sector, including liquefied petroleum gas (LPG). The Central Government Distributor (CGD) is also involved in the distribution of LPG. Meanwhile, state-owned oil marketing companies like IndianOil and BharatGas operate under their respective regulatory frameworks.

Liquefied Natural Gas (LNG) is another key player in the natural gas sector, with its own set of regulations and guidelines. The LNG market is expected to continue growing in India, driven by increasing demand for cleaner energy sources.