If you use a domestic LPG cylinder and avail of the subsidy, this news is crucial for you. The government is set to implement a major change in LPG subsidy rules starting October 1, 2026. According to the Ministry of Petroleum and Natural Gas, Biometric Aadhaar Authentication (BAA) has now been made mandatory for subsidized cylinders.

What changes from October 1?
Under the new rules, domestic LPG consumers who have not yet completed their biometric Aadhaar authentication will need to do so to book a gas refill at the subsidized rate starting October 1, 2026. However, there is some relief: approximately 89.9 percent of active LPG consumers have already completed this process as of September 19.

What happens if you do not complete Aadhaar authentication for LPG?

Customers who have not undergone BAA (Aadhaar authentication) will not be denied LPG cylinders. However, those who do not complete the authentication will have to purchase cylinders at the prevailing market price and will not receive the subsidy. According to the government, this authentication requirement has been introduced to ensure that the benefits of subsidized LPG reach the intended families and to prevent the misuse of domestic LPG cylinders for commercial and industrial purposes.

How can customers complete the authentication?
Customers have several options to complete the biometric Aadhaar authentication. They can do so at the time of cylinder delivery, by visiting their LPG distributor's showroom, or by using the mobile app provided by their oil marketing company.
Indane customers can complete this process via the 'Indian Oil ONE' app, while Bharatgas customers can use 'HelloBPCL'. HP Gas customers can complete the authentication through the 'HP PAY' app.

Customers who do not wish to complete the authentication must communicate their preference through the digital channels of their respective oil marketing companies. According to an ET report, they can still purchase cylinders, but the supply will be at market price and subject to local availability.

Subsidy and Compensation
Domestic LPG is sold at a price lower than its cost. The estimated implicit subsidy on a 14.2-kg cylinder for September 2026 is approximately ₹210, down from ₹721 in June. The government stated that it provided ₹22,000 crore in compensation to oil marketing companies in FY23. It is paying ₹30,000 crore as compensation for FY26 and FY27.

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