The Ministry of Petroleum and Natural Gas has implemented a major overhaul of India’s cooking gas framework effective May 2026.
In one of the most sweeping overhauls of the country’s cooking gas framework in recent years, the Ministry of Petroleum and Natural Gas has introduced a raft of new rules for liquefied petroleum gas (LPG) consumers, effective 1 May 2026.
Government Targets Dual LPG-PNG Households Amid Energy Crisis
The government has begun identifying households that hold both LPG and PNG connections after banning dual ownership to curb misuse and better target subsidies. Under a March 14 amendment to the LPG Regulation Order, households with piped natural gas must surrender their domestic LPG connections and are no longer eligible for LPG refills or new connections. Oil companies and distributors have also been directed not to supply LPG to such consumers.
The move aims to prioritise LPG for households without PNG access and to support expansion of piped gas networks. So far, over 43,000 users with dual connections have surrendered LPG, though officials expect higher compliance. The decision comes amid energy supply disruptions linked to tensions in West Asia, which have affected imports.
Stricter Booking Rules and OTP Deliveries
Consumers across the country under Indane, Bharat Gas, and HP Gas now face new rules covering booking intervals, OTP-based delivery, and mandatory KYC updates. The Ministry of Petroleum and Natural Gas has increased the booking interval from 21 to 25 days in urban areas and up to 45 days in rural areas.
Commercial Cylinder Prices Revised Sharply
Since March 2026, oil marketing companies have hiked the 19 kg commercial cylinder price three times. The first hike was in the range of Rs 28 to Rs 31 on 1 March, followed by another increase of Rs 114.5 per cylinder on 7 March, and a further hike of Rs 196 to Rs 218 across major metro cities for April. A further revision has now been effected on 1 May, with sources citing a cumulative increase touching Rs 993 since the crisis began.
Domestic Prices and Petrol Held Steady
Domestic LPG prices remain unchanged. The cost of a 14.2 kg household cylinder, last raised by Rs 60 on 7 March, continues to stand at Rs 913 in Delhi. Petrol and diesel prices have also been left untouched, remaining at Rs 94.77 per litre and Rs 87.67 per litre respectively in Delhi.
At current rates, oil marketing companies are incurring an under-recovery of Rs 380 per cylinder, with cumulative losses projected to reach Rs 40,484 crore by the end of May.
