LPG curbs persist: New connections, second cylinders still stalled

Five months after restrictions on new liquefied petroleum gas (LPG) connections and double-bottle connections were introduced, households are still awaiting clarity, even as most other curbs linked to the West Asia crisis have been eased.

The curbs were initially imposed in late February as a precautionary measure during the conflict, but while other restrictions on petroleum products have since been withdrawn, the suspension on new connections and second cylinders remains in force. Industry sources estimate that a few lakh households across India are currently on the waiting list, making the continued freeze a growing concern for affected families.

Separately, existing LPG users who have not yet completed their e-KYC (biometric Aadhaar authentication) are now receiving messages warning that they will lose access to subsidised refills unless they comply. The e-KYC drive, initiated months ago, has left many consumers uncertain about their eligibility. Oil marketing companies (OMCs) — Indian Oil, Hindustan Petroleum and Bharat Petroleum — along with their distributors are still awaiting a formal government directive on the pricing for such non-compliant consumers.

A key unresolved question is whether these consumers will have to pay commercial LPG rates, and if so, whether the supply would attract the higher 18% Goods and Services Tax (GST) instead of the current 5% on domestic cylinders. In Hyderabad, a 14.2 kg domestic cylinder costs ₹994 including 5% GST, while a 19 kg commercial cylinder, after a ₹206 reduction on August 1, is priced at ₹2,985.

Government orders permitting the resumption of new LPG connections and double-bottle connections are essential, an OMC official said, confirming that other restrictions on petroleum products, imposed days after the West Asia conflict began, have been relaxed. These included curbs on commercial LPG supplies and on bulk users drawing diesel from retail outlets.

The ongoing freeze has hit several categories of consumers. Newly married couples, people relocating for jobs or education, and large families in need of an additional connection are among those most affected. LPG distributors say they continue to receive queries from such households but are unable to process their requests.

Jagan Mohan Reddy, president of the Telangana LPG Distributors Association, disputed the official estimates of waiting numbers. "I anticipate around 4-4.5 lakh consumers in Telangana to benefit once the new and second cylinder issue is resumed," he said. His comments highlight the gap between official tallies and on-ground demand, particularly in states like Telangana.

According to the Petroleum Planning and Analysis Cell (PPAC), India has 32.97 crore active domestic LPG consumers, including 1.26 crore in Telangana. The prolonged suspension is a matter of concern for these households, who depend on subsidised cooking gas for their daily needs, and for distributors who face administrative backlogs.

Meanwhile, oil companies are actively promoting 5 kg free-trade LPG cylinders and have introduced a 10 kg composite body cylinder. The pricing of both is linked to commercial LPG rates, with sources saying the refill cost of the 10 kg composite cylinder is on the higher side. As consumers continue to wait for a clear policy on when normal supply channels will be restored, the industry is calling for an expedited government decision to resolve the impasse.