India's LPG Industry Set for Major Overhaul Starting September 1

The Indian government has announced several changes to the LPG (Liquefied Petroleum Gas) industry, set to take effect from September 1, 2026. The first change is a revision in LPG prices, which are determined by global market conditions, crude oil prices, and other costs. As of August 2026, domestic LPG cylinder prices remained unchanged at Rs 942 per cylinder in Delhi, while commercial LPG prices were lowered for the second consecutive month.

The government has also banned new LPG connections since March 2026 to curb supply shortages, due to the escalation of conflict in the Middle East. However, customers are still awaiting an update on new connection applications.

Another key change is the promotion of PNG (Piped Natural Gas) expansion, with a new incentive scheme approved by the Oil Ministry effective from September 1. The government has encouraged LPG customers to switch to PNG if available in their society or resident area, and warned that LPG connections will be discontinued for those who ignore notices to switch.

The deadline for Aadhaar-based e-KYC (Know Your Customer) authentication has been extended until August 31, with OMCs warning LPG dealers not to expect further extensions. If the deadline is missed, existing customers may face temporary suspension or commercial rates for their domestic LPG cylinders.