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[BUSINESS] · India · 15 sources

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India's LPG Subsidy Limit and Price Rules Take Effect on Aug 1

From 1 August 2026 the Indian government will implement a set of changes to liquefied petroleum gas (LPG) distribution. The Pradhan Mantri Ujjwala Yojana subsidy is reduced to four cylinders per beneficiary per year, ending the previous six‑cylinder entitlement. A lock‑in period of 25 days for urban customers and 45 days for rural customers must elapse before a second cylinder can be booked, and delivery now requires OTP verification on the customer’s registered mobile number. Aadhaar‑linked e‑KYC must be completed by 16 August 2026 or the subsidy will be lost. The rule encouraging households in PNG‑covered areas to switch from LPG to piped natural gas remains in force.

Oil marketing companies (IOCL, HPCL and Bharat Petroleum) will announce the new LPG cylinder rates on the first of each month; commercial 19‑kg cylinder prices have already been cut by more than Rs 200 in Delhi and Kolkata, while domestic cylinder rates stay unchanged. Separately, India plans to source up to 25 % of its LPG imports from the United States by 2027 and Indian Oil Corporation intends to acquire a 50 % stake in a Very Large Gas Carrier to support that diversification.

Entities

Aadhaar e‑KYC system · Bharat Petroleum · Bharat Petroleum (BPCL) · Government of India · Hindustan Petroleum (HPCL) · Hindustan Petroleum Corporation · Indian Government · Indian Oil Corporation · Indian Oil Corporation (IOCL) · Ministry of Petroleum and Natural Gas, India · Oil Marketing Companies · Oil Marketing Companies (IOCL, HPCL, Bharat Petroleum)

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