LPG rule change from May 1! OTP now mandatory, govt puts these households on radar

The Ministry of Petroleum and Natural Gas has introduced a new set of rules for liquefied petroleum gas consumers from 1 May 2026, in one of the biggest changes to the country’s cooking gas system in recent years. The government has started identifying households that have both LPG and piped natural gas connections after banning dual ownership to curb misuse and improve subsidy targeting.

Dual LNG connections on radar? 

Under a 14 March amendment to the LPG Regulation Order, households with PNG must surrender their domestic LPG connections. They are no longer eligible for LPG refills or new connections, and oil companies and distributors have been directed not to supply LPG to such consumers. The move is aimed at giving priority to households without PNG access and supporting the expansion of piped gas networks.

OTP-based delivery

Officials said more than 43,000 users with dual connections have already surrendered their LPG connections, though higher compliance is expected. Consumers using Indane, Bharat Gas and HP Gas will also come under new rules on booking intervals, OTP-based delivery and mandatory KYC updates. The Ministry has increased the booking gap from 21 to 25 days in urban areas and up to 45 days in rural areas.

Rise in commercial cylinder prices

Commercial LPG cylinder prices have risen sharply since March 2026. Oil marketing companies increased the price of a 19 kg commercial cylinder by Rs 28 to Rs 31 on 1 March, by ₹114.5 on 7 March, and by ₹196 to ₹218 across major metros for April. A further revision took effect on 1 May, with a cumulative increase reaching ₹993 since the crisis began.

Domestic LPG cylinder rates unchanged

The price of a 14.2 kg domestic cylinder, last raised by ₹60 on 7 March, remains ₹913 in Delhi. Petrol and diesel prices in Delhi are unchanged at ₹94.77 a litre and ₹87.67 a litre respectively.

At current rates, oil marketing companies are facing an under-recovery of ₹380 per cylinder, with cumulative losses projected at ₹40,484 crore by the end of May. The government said that despite the difficult global situation and tensions in West Asia affecting imports and energy routes, it is ensuring 100 per cent supply of domestic LPG, PNG and CNG for transport.