LPG rules change from May 1: Dual connections banned and commercial cylinder prices witness massive spike

NewDelhi: LPG gas price: In what will be considered one of the biggest reforms in India’s cooking gas structure over the years, the Ministry of Petroleum & Natural Gas has brought about a series of rules for LPG consumers taking effect from May 1, 2026.

Dual LPG-PNG users banned by government

In an effort to stop abuse of the subsidy system and encourage proper use of resources, the government has announced that it will be banning households owning both domestic LPG and PNG connections. As per the amendment made to the LPG Regulation Order on March 14, all households with active PNG connections must give up their LPG connections.

This means that such households would not be able to receive refills or install any new connections. Oil Marketing Companies (OMC) have been instructed to immediately stop providing supplies to such households. It is hoped that by doing so, priority would be provided to those households that do not have any other sources of energy. In light of supply disruptions owing to the energy crisis in West Asia, over 43,000 dual connection users have given up their cylinders.

Stricter booking intervals and OTP deliveries

Consumers across India of Indane, Bharat Gas, and HP Gas will now have to stick to new booking intervals and OTP deliveries:

Booking intervals: In order to tackle black marketing, the ministry has tightened the booking interval from 21 days to 25 days in urban areas and up to 45 days in rural areas.

Security & safety: All the deliveries will now come with mandatory verification through OTP. Furthermore, there will also be mandatory updates of KYC in order to keep the consumer database clean and hygienic.

Commercial sector hit hard by price hike

For commercial sectors, the rise in cost is going to become an increasingly tough issue to bear as the price of 19 kg cylinders is being raised for the fourth time by the OMCs since March 2026:

  • March 1: Increase by Rs 28 to Rs 31.
  • March 7: By Rs 114.50.
  • April: From Rs 196 to Rs 218.
  • May 1: Sources claimed that the next revision will result in an overall increase of Rs 993 as a result of the ongoing energy crisis.

Unchanged domestic rates and fuel costs

As a measure to ensure affordability, there have been no changes in domestic 14.2 kg LPG rates. The rate still stands at Rs 913 for a cylinder in Delhi, the last increase of which was made on March 7. Additionally, petrol and diesel rates in Delhi have been unchanged since their most recent increase. This puts petrol at Rs 94.77 per litre and diesel at Rs 87.67.

Nevertheless, despite this rate stability, OMCs have recorded a loss of Rs 380 per cylinder in under-recoveries. Losses to the tune of Rs 40,484 crore are expected by the end of May.

Geopolitical conflicts leading to worldwide crises

As the geopolitical situation heats up, vital energy channels are being clogged, leading to increases in global crude and gas prices. Nonetheless, the Ministry of Petroleum has issued a 100% supply guarantee for all forms of domestically used fuel, i.e., domestic LPG, PNG, and CNG. It has urged consumers to disregard “hoax” news about increasing fuel costs.

Bureau Report

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