Effective May 1, 2026, the Ministry of Petroleum and Natural Gas has rolled out new LPG regulations. Key changes include banning dual LPG and PNG connections, mandating OTP-based delivery, and a significant price increase for commercial cylinders.
With effect from May 1, 2026, the Ministry of Petroleum and Natural Gas has implemented a number of new regulations for customers of liquefied petroleum gas (LPG), one of the most extensive changes to the nation's cooking gas system in recent years.
No Dual Connection
After outlawing dual ownership, the government started identifying families with both LPG and PNG connections in an effort to reduce abuse and more effectively focus subsidies. Households with piped natural gas are required to give up their home LPG connections and are no longer qualified for LPG refills or new connections under a March 14 change to the LPG Regulation Order. Additionally, wholesalers and oil firms have been instructed not to provide LPG to these customers.
The action is to encourage the growth of piped gas networks and provide LPG priority for homes without access to PNG. Although authorities anticipate more compliance, more than 43,000 people with dual connections have turned in LPG thus far. The decision was made at a time when imports have been impacted by disruptions in the energy supply caused by conflicts in West Asia.
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OTP-Based Delivery
New regulations pertaining to booking intervals, OTP-based delivery, and required KYC updates are now applicable to consumers nationwide under Indane, Bharat Gas, and HP Gas. The booking period has been extended by the Ministry of Petroleum and Natural Gas from 21 to 25 days in urban areas and up to 45 days in rural regions.
Commercial Cylinder Price Increase
The price of a 19 kilogram commercial cylinder has increased three times since March 2026 due to oil marketing businesses. The initial rise was between Rs 28 and Rs 31 on March 1. On March 7, there was another increase of Rs 114.5 per cylinder. In April, there was a further increase of Rs 196 to Rs 218 in key metro areas. According to reports, there has been an additional adjustment since May 1st, with a total rise of Rs 993 since the start of the crisis.
The increase coincides with growing geopolitical unrest in West Asia, which has blocked vital energy corridors and raised the price of petrol and crude oil worldwide. The administration has reassured everyone that it is guaranteeing a 100% supply of domestic LPG, piped natural gas and CNG for transportation despite the difficult worldwide circumstances.
