LPG Overhaul From May 1: Mandatory OTP, Longer Booking Gap, and PNG Shift for Households
Starting May 1, India is overhauling LPG distribution with mandatory OTP-based delivery and extended booking intervals (25 days for urban, 45 for rural) to prevent hoarding. Additionally, households in PNG-enabled areas may lose their LPG connections, while PMUY beneficiaries must complete Aadhaar eKYC to continue receiving subsidies.
- Republic Business
- 2 min read
Indian households are set to navigate a stricter energy landscape starting May 1, as the government implements a mandatory digital verification system and tighter booking timelines for Liquefied Petroleum Gas (LPG) cylinders.
The new rules, introduced by major state-run oil marketing companies including Indian Oil Corporation and Bharat Petroleum, make the Delivery Authentication Code (DAC) mandatory for all domestic deliveries. Under this, the cylinder will only be handed over after the consumer provides an OTP sent to their registered mobile number. This will end the system of physical blue book or receipt-only verification.
Hoarding Crackdown
To prevent hoarding and curb black marketing of subsidized fuel, the Ministry of Petroleum has extended the minimum interval between two cylinder bookings.
- Urban Areas: The booking gap has been increased from 21 days to 25 days.
- Rural Areas: The waiting period is now extended up to 45 days.
- Systems will automatically reject early booking attempts.
Following a Ministry notification under the Essential Commodities Act, households in areas with functional Piped Natural Gas infrastructure may face disconnection of their LPG supply. They have been given a three-month window to switch. After this, distributors are authorized to stop LPG refills to prioritize cylinder supply for rural and underserved regions.
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Aadhaar-based eKYC has become mandatory for all Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries. Failure to complete this digital verification by the May 1 deadline could lead to a suspension of subsidies or a total blockage of booking facilities.