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In a concerted effort to manage energy supply and curb diversion, authorities in India are introducing new regulations for Liquefied Petroleum Gas (LPG) distribution. Delhi has tightened rules for commercial LPG, while Odisha has made electronic Know Your Customer (e-KYC) verification mandatory for domestic consumers.
Delhi Strengthens Commercial LPG Supply Norms
The Delhi government, through its Food, Supplies and Consumer Affairs Department, issued an order on April 2, 2026, amending its commercial LPG distribution policy. Under the new guidelines, industrial and commercial establishments must be registered with an Oil Marketing Company (OMC) to obtain LPG cylinders. Additionally, businesses in areas with existing pipeline infrastructure are now required to apply for a Piped Natural Gas (PNG) connection.
For establishments located in areas where PNG access is not yet available, a declaration must be submitted stating their intent to apply for a PNG connection once the network expands. OMCs are directed to verify these documentation records at least once to ensure compliance. Businesses needing both LPG and PNG can apply to the Additional Commissioner of the department, with decisions made in consultation with the three major OMCs.
Odisha Mandates e-KYC for Domestic LPG Consumers
To combat the diversion of subsidized cylinders and ensure that benefits reach genuine households, the Odisha government has made e-KYC mandatory for all domestic LPG consumers. Food Supply and Consumer Welfare Minister K.C. Patra confirmed that distributors have received instructions to provide cylinders only to consumers who have completed their e-KYC verification.
The state has also initiated action against the black marketing of cooking gas cylinders and has halted the illegal open-market sales of 1 kg and 5 kg cylinders.
National Efforts to Ensure Energy Stability
These state-level measures come amidst broader national efforts to ensure energy stability, particularly in light of ongoing supply pressures linked to the West Asia conflict. The Centre announced on April 5, 2026, that domestic LPG supply remains stable, with no reported dry-outs at distributorships and online bookings accounting for approximately 95% of total bookings. Delivery Authentication Code (DAC)-based deliveries have also seen a significant increase.
However, commercial LPG allocation has been capped at 70% of pre-crisis levels nationally, including a 10% component linked to the transition to PNG. Refining companies are tasked with supplying minimum quantities of LPG components to critical sectors like pharmaceuticals and food distribution.
The government is actively accelerating PNG expansion, with City Gas Distribution companies offering incentives for both domestic and commercial PNG connections. This push aims to reduce long-term dependence on LPG, with significant progress reported in new PNG connections and registrations since March 2026. A new order under the Essential Commodities Act is also facilitating the rapid development of gas pipeline infrastructure to improve last-mile connectivity.
Officials state that refineries are operating at high capacity with adequate crude stocks, and the government is urging states to counter rumors about fuel shortages with verified information.