LPG Rule Changes From July: OTP Verification, Subsidy, e-KYC and PNG Users Face New Regulations

By Siddhi Jain | Jul 2, 2026, 20:09 IST

Several new rules related to Liquefied Petroleum Gas (LPG) have come into effect from July 2026, introducing changes to cylinder delivery, subsidy eligibility, customer verification, and domestic gas usage. The updated guidelines are aimed at improving transparency, strengthening customer authentication, and reducing misuse of subsidized LPG connections.

Among the major changes are mandatory OTP and Delivery Authentication Code (DAC) verification during cylinder delivery, stricter e-KYC requirements for eligible beneficiaries, revised subsidy conditions, and fresh provisions for households using both LPG and Piped Natural Gas (PNG).

Here's a detailed look at the key changes.

1. OTP Verification Now Mandatory for LPG Cylinder Delivery

One of the biggest changes is the introduction of compulsory OTP verification during LPG cylinder delivery.

After booking a cylinder, customers will receive a One-Time Password (OTP) on their registered mobile number. At the time of delivery, the customer must share this OTP with the delivery executive.

Without successful OTP verification, the cylinder will not be handed over, even if the customer has a valid booking confirmation.

The measure is intended to improve delivery authentication and help curb unauthorized deliveries, black marketing, and diversion of domestic LPG cylinders.

2. e-KYC Required to Continue Receiving LPG Subsidy

Beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) are now required to complete the prescribed e-KYC process to continue receiving LPG subsidy benefits.

According to the revised guidelines, beneficiaries who failed to complete e-KYC by the notified deadline may not receive subsidy payments until the verification process is completed.

The subsidy amount, where applicable, continues to be credited directly to the beneficiary's linked bank account.

The revised policy has also changed the number of subsidized cylinders available under the scheme. While eligible beneficiaries were previously entitled to subsidy on up to nine cylinders annually, the revised arrangement limits the benefit to four subsidized cylinders per year, according to the latest policy announcement.

3. Delivery Authentication Code (DAC) Introduced

Along with OTP verification, LPG distributors have also introduced a Delivery Authentication Code (DAC) system.

Customers will need to provide the DAC to the delivery executive before the delivery process is completed.

Once authentication is successful:

Delivery is officially confirmed.
A digital cash memo is sent to the customer's registered mobile number.
The digital receipt includes details such as:
- Cylinder price
- Payment information
- Delivery date
- Transaction details

Customers are advised not to share the DAC with anyone except the authorized delivery personnel.

4. New Rules for Consumers Using Both PNG and LPG

Fresh guidelines have also been introduced for households that simultaneously use Piped Natural Gas (PNG) and LPG cylinders.

Under the revised rules:

Consumers are required to keep their PNG connection active.
In certain notified cases, they may need to surrender their LPG cylinder within the prescribed time period.
After surrendering the connection, consumers will receive a transfer voucher.
The voucher can be used later if they move to an area where PNG services are unavailable and wish to obtain a new LPG connection.

Consumers should verify the applicability of these provisions with their gas distributor, as implementation may depend on local policies and service availability.

PNG Customers Also Face Stricter Compliance

The revised framework also introduces stricter provisions for PNG consumers.

According to the new guidelines:

Failure to pay PNG bills for two consecutive months may result in disconnection of the gas supply.
Service restoration will be processed only after all outstanding dues are cleared.
If an inspection determines that a consumer has intentionally damaged the PNG pipeline or related infrastructure, the repair cost may be recovered from the consumer.

What Consumers Should Do

To avoid service disruptions, LPG and PNG consumers should:

Ensure their registered mobile number is active for OTP verification.
Complete e-KYC if required under the applicable scheme.
Keep Aadhaar, bank account, and customer details updated with the gas agency.
Never share OTP or DAC with unauthorized individuals.
Pay PNG bills on time to avoid disconnection.

Key Takeaway

The latest LPG regulations are aimed at improving transparency, preventing misuse of subsidized cylinders, and strengthening digital verification during cylinder delivery. Consumers should familiarize themselves with the new requirements to ensure uninterrupted LPG services and continued eligibility for applicable subsidy benefits.

Before taking any action regarding subsidy, connection surrender, or verification requirements, customers are advised to confirm the latest instructions with their LPG distributor or the official oil marketing company serving their area.