LPG Subsidy: Rules for LPG cylinders are changing from October 1; subsidy for 10% of customers to stop… find out why

Biometric Aadhaar authentication becomes mandatory for the LPG subsidy starting October 1, 2026. Find out what the government has said regarding the discontinuation of the subsidy for 10% of customers due to this new rule.

LPG Subsidy: If you have an LPG connection at home and avail of the subsidy, this news is crucial for you. From October 1, 2026, you will need to verify your identity using fingerprints or facial recognition to obtain subsidized LPG refills. This process is known as Biometric Aadhaar Authentication (BAA). Consequently, customers who have not yet completed this biometric authentication may face difficulties in booking refills at the regulated retail selling price (RSP) with the subsidy.

Authentication completed for 27.43 crore customers

According to the Ministry of Petroleum and Natural Gas, as of September 19, 2026, 27.43 crore active domestic LPG consumers—approximately 89.9%—have completed biometric Aadhaar authentication. About 10.1% of consumers have yet to undergo this process. Those who have already completed authentication do not need to take any further action, and their LPG refill services will continue as usual.

Aadhaar authentication can also be done from home

LPG customers who have not yet completed BAA can do so in several ways. Biometric authentication can be performed via the delivery personnel at the time of cylinder delivery or by visiting the LPG distributor’s showroom. Additionally, there is a facility to complete the process from the comfort of your home using the mobile app of the respective oil marketing company.

LPG Aadhaar authentication via these apps

Indane customers can complete authentication through the IndianOil ONE app, Bharatgas customers via HelloBPCL, and HP Gas customers through the HP PAY app. According to the ministry, once this process is complete, customers will be able to book refills at the regulated retail price, inclusive of the applicable subsidy.

Will LPG supply stop if biometric authentication is not done?

The ministry has clarified that the LPG supply of customers who do not undergo biometric authentication will not be completely stopped. However, they will be able to purchase LPG at the market price without the subsidy. To do this, customers must register their preference through their oil marketing company’s digital channels, such as the consumer portal, mobile app, WhatsApp chatbot, or IVRS.

Option for 5 kg or 10 kg cylinders

Customers who do not wish to undergo biometric authentication, or are unable to do so for any reason, may be provided with 5 kg or 10 kg LPG cylinders at market price, subject to local availability. In other words, the option for LPG supply will remain, but biometric authentication will be mandatory to avail of subsidized refills.

Why did the government make Aadhaar authentication mandatory?

The government states that the objective of biometric Aadhaar authentication is to ensure that subsidies reach genuine and eligible families. It is said that this will help identify duplicate and ineligible connections and prevent the diversion of domestic LPG cylinders for commercial or industrial use.

LPG-Aadhaar deadline extended multiple times

The initial deadline for biometric authentication was set for June 30, 2026. It was extended several times to provide customers with extra time, with the final deadline eventually set for September 14, 2026. Now, the authentication requirement for booking subsidized refills will come into effect on October 1.

How much does the government spend on LPG subsidies?

According to the ministry, the subsidy component on a 14.2 kg domestic LPG cylinder in September 2026 is approximately ₹210, whereas in June 2026, it had reached around ₹721 per cylinder. To keep domestic LPG affordable, the government is providing compensation of ₹30,000 crore to Oil Marketing Companies (OMCs) during the financial years 2025-26 and 2026-27.

OMCs face an ‘under-recovery’ of over ₹62,000 crore on LPG

According to the government, the total under-recovery incurred by public sector oil marketing companies on domestic LPG had exceeded ₹62,000 crore by August 31, 2026. Amidst this financial burden, the Ministry has emphasized the need to deliver subsidies in a targeted manner to genuine and eligible consumers.

Ensure this is done before October 1

If you have not yet completed the biometric Aadhaar authentication (BAA) for your LPG connection and wish to continue receiving subsidy benefits, it is essential to complete the BAA process before October 1, 2026. This process can be completed at the time of delivery, at the LPG distributor’s showroom, or via the respective OMC’s mobile app. The Ministry has also provided a toll-free helpline number, 1800 2333 555, for assistance related to LPG services.