Domestic LPG consumers could soon see changes in the way cylinder prices and subsidies are applied. A dual-pricing system for LPG cylinders is expected to be introduced, with the subsidy linked to the completion of e-KYC for the LPG connection.
Consumers who complete the required biometric Aadhaar authentication will be eligible for subsidised cylinders. Those who do not complete the process may have to purchase LPG at the prevailing market price, which would mean paying the non-subsidised rate.
According to the Ministry of Petroleum and Natural Gas, biometric Aadhaar authentication is mandatory for consumers seeking subsidised LPG cylinders.
Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum have also issued instructions to their gas agencies regarding e-KYC. Consumers who do not complete the required process will have the option of purchasing 5 kg or 10 kg cylinders at commercial rates.
LPG Dual Pricing System May Return After 10 Years
The dual-pricing arrangement for LPG cylinders is reportedly being brought back after around a decade. Under the proposed system, consumers who complete e-KYC would receive cylinders at the applicable subsidised rate, while those who fail to complete the process would have to pay the non-subsidised market price.
The official implementation date for the system is expected to be announced soon.
Two Rates for Domestic LPG Cylinders
Oil marketing companies are expected to introduce two different pricing structures for domestic LPG cylinders.
At present, the cylinder price is ₹952, including a subsidy of ₹12. Under the proposed dual-pricing system, consumers who have not completed e-KYC would receive cylinders at the market rate without the subsidy. The same market-rate arrangement would also apply to consumers under the Ujjwala Yojana, according to the information provided.
What Changes from October 1, 2026?
From October 1, 2026, domestic LPG consumers who have not completed biometric Aadhaar authentication will need to complete the process to book refills at subsidised rates.
There is some relief for consumers, as approximately 89.9 per cent of active LPG customers had already completed the biometric authentication process by September 19.
LPG Subsidy and Government Compensation
Domestic LPG is currently sold below its cost, with the difference supported through government measures. The estimated implicit subsidy on a 14.2-kg LPG cylinder for September 2026 is around ₹210, compared with ₹721 in June.
The government has stated that it provided ₹22,000 crore in compensation to oil marketing companies during FY23. It is also paying ₹30,000 crore as compensation for FY26 and FY27.
Disclaimer
The information in this article is based on the details provided regarding LPG pricing, e-KYC and subsidy arrangements. Rules, eligibility conditions, prices and implementation dates may be changed or updated by the government or oil marketing companies. Consumers should verify the latest information through official LPG and government sources before making any decision.