LPG woes: Delhi tightens commercial supply rules, Odisha makes KYC mandatiry. Check details

Amid supply pressures linked to the West Asia conflict, authorities across India are tightening LPG distribution norms while accelerating the shift toward Piped Natural Gas (PNG) to ensure long-term energy stability. 

The Delhi government has introduced stricter rules for commercial LPG supplies. In an order issued on April 2, the Food, Supplies and Consumer Affairs Department amended the city’s commercial LPG distribution policy. 

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Under the new guidelines, industrial and commercial establishments can obtain LPG cylinders only if they are registered with an Oil Marketing Company (OMC) and have applied for a PNG connection in areas where pipeline infrastructure is available. 

In areas without PNG access, businesses must submit a declaration stating they will apply for a PNG connection once the network becomes available. 

OMCs directed to verify documentation 

"When supplying to commercial gas consumers, the OMCs shall at least once collect documentation records to ensure that the consumer is registered with the OMC and has either applied for a PNG connection or has submitted an application indicating the intent to obtain a PNG connection upon its availability," the order stated. 

Businesses that require LPG alongside PNG can apply to the Additional Commissioner of the department. The decision will be taken in consultation with the three OMCs. 

Also read: This cylinder is now available on a valid ID, no address proof needed

"The OMCs could also collect such applications and submit to the Additional Commissioner for a prompt decision. The Additional Commissioner shall promptly dispose of the same in consultation with the three Oil Marketing Companies," the order added. 

Other provisions of the policy notified on March 26 remain unchanged. 

Odisha makes e-KYC mandatory for LPG consumers 

The Odisha government has made e-KYC mandatory for domestic LPG consumers to curb diversion and ensure genuine beneficiaries receive cylinders. 

Food Supply and Consumer Welfare Minister K C Patra said distributors have been instructed to supply LPG only to consumers who have completed e-KYC. 

“We have issued instructions to LPG distributors to provide cylinders to consumers who have completed their e-KYC (know your customer),” Patra said. 

The state has also stopped illegal open-market sales of 1 kg and 5 kg cooking gas cylinders and taken action against black marketing. 

Centre says domestic LPG supply stable 

In a notification on April 5, the Centre said domestic LPG supply remains stable despite the ongoing crisis. 

There have been no reported dry-outs at LPG distributorships, and online bookings now account for about 95% of total bookings. Delivery Authentication Code (DAC)-based deliveries have increased from 53% in February to 90% till April 4. 

More than 51 lakh domestic LPG cylinders were delivered across the country on April 4.

To improve accessibility, the government has expanded the sale of 5-kg cylinders. More than 90,000 cylinders were sold in a day, taking total sales since March 23 to around 6.6 lakh. These can be purchased from LPG distributorships using any valid ID proof without address verification. 

Commercial LPG allocation reduced 

To manage supply, the Centre has capped commercial LPG allocation at 70% of pre-crisis levels, including a 10% reform-based component linked to PNG transition. 

Refining companies have been directed to supply minimum quantities of LPG components such as C3 and C4 streams to critical sectors including pharmaceuticals, food distribution and petrochemicals. 

A three-member committee of executive directors from Indian Oil, Hindustan Petroleum and Bharat Petroleum is coordinating commercial LPG distribution across states and union territories. 

Since March 14, about 78,833 metric tonnes of commercial LPG has been sold. 

Push for rapid PNG expansion 

The government is accelerating PNG expansion to reduce dependence on LPG. City Gas Distribution companies such as Indraprastha Gas Limited, Mahanagar Gas Limited, GAIL Gas and BPCL have offered incentives to encourage both domestic and commercial PNG connections. 

Commercial establishments including restaurants, hotels and canteens are being prioritised for connections. 

Since March 2026, about 3.6 Lakh PNG connections have been gasified. Further, more than 3.9 Lakh customers have been registered for new connections, the government said. 

A new order under the Essential Commodities Act has also created a time-bound framework for laying and expanding gas pipelines, aimed at speeding up infrastructure development and improving last-mile connectivity. 

Officials said refineries are operating at high capacity with adequate crude stocks, and the government has urged states to counter rumours about fuel shortages through verified information.