What is LPG subsidy? Know rules, eligibility and how to spot fake LPG delivery messages and avoid scams | Explained

State-run oil marketing companies (OMCs) have launched another verification drive to reduce the liquefied petroleum gas (subsidy burden by checking the annual income details of cooking gas consumers.

As part of the exercise, oil companies are sending warning messages to LPG users, stating that the subsidy may be permanently discontinued if the annual taxable income of either the consumer or their spouse exceeds 10 lakh. Consumers have been asked to respond within seven days to avoid possible cancellation of the benefit.

The move follows tighter verification measures introduced by the Centre, under which are matching LPG customer data with records from the Income Tax Department.

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5 QUESTIONS
1

What is the eligibility criteria for receiving an LPG subsidy in India?

To be eligible for an LPG subsidy, consumers must have an active domestic LPG connection, and the combined annual taxable income of the consumer and their spouse must be below ₹10 lakh. Additionally, consumers need to link their Aadhaar and bank account with their LPG connection.



2

How does the government verify LPG subsidy eligibility?

The government verifies LPG subsidy eligibility by matching LPG customer data with Income Tax Department records. This process identifies consumers who continue to receive subsidies despite exceeding the ₹10 lakh annual income threshold.

3

How can I check if my LPG subsidy is being credited to my account?

After booking an LPG cylinder and paying the market price, the subsidy is automatically credited to your bank account. You can check the status on the mylpg.in website or app by using your LPG ID.

4

What is the Delivery Authentication Code (DAC) system for LPG cylinders?

The Delivery Authentication Code (DAC) system is a mandatory verification process where LPG cylinders are delivered only after customers provide a specific code to the delivery agent. This system helps curb the unauthorized diversion of LPG cylinders and ensures secure delivery.

5

How can I avoid LPG delivery scams and fake messages?

To avoid scams, always verify if you have booked a cylinder before trusting delivery messages. Check if messages come from official sender IDs like ‘VK-INDANE’ or ‘VM-HPGASc-S’. Never share OTPs received through suspicious calls, WhatsApp messages, or unknown links.

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Through this process, authorities are identifying consumers who continue to receive subsidies despite crossing the prescribed income threshold. At present, LPG consumers who are not in the income tax bracket and have linked their Aadhaar number with their bank account receive a subsidy of 24.50 on every cylinder delivered to their home.

What is the LPG subsidy?

The LPG subsidy scheme is a government initiative aimed at making cooking gas more affordable for eligible households in India. Under the programme, consumers buy domestic LPG cylinders at market prices, while the subsidy amount is later transferred directly to their registered bank accounts. To receive the benefit, consumers must link their Aadhaar number with their LPG connection and bank account. Many users also connect their bank accounts with UPI for easier access to payments and transfers.

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The primary objective of the subsidy is to support low-income families, encourage the use of clean cooking fuel, and reduce the financial burden associated with essential household expenses.

As per government rules introduced in December 2015, households with an annual income exceeding 10 lakh are not eligible for LPG subsidy. The rule applies to both the consumer and their spouse. Earlier, the system largely relied on self-declaration, but companies are now implementing stricter checks through integrated verification with Income Tax Department records.

Which companies provide LPG subsidy?

Subsidy benefits are available through major state-run oil marketing companies, including:

Indian Oil Corporation (Indane)

Hindustan Petroleum Corporation Limited (HP Gas)

Bharat Petroleum Corporation Limited (Bharat Gas)

Meanwhile, oil companies have strengthened LPG delivery procedures by making the Delivery Authentication Code (DAC) system mandatory. Under this system, LPG cylinders are delivered only after customers provide a verification code to the delivery agent.

The DAC mechanism has been introduced to curb unauthorised diversion of LPG cylinders.

Who is eligible for LPG subsidy?

Consumers can receive the LPG subsidy if they meet the following conditions:

  1. To receive an LPG subsidy, consumers must have an active domestic LPG connection, as commercial or industrial connections are not eligible. The combined annual taxable income of the consumer and spouse must be below 10 lakh under the Income Tax Act; households earning above this limit do not qualify for the subsidy.
  2. Consumers are also required to link their Aadhaar number and bank account with the LPG connection under the Cash Transfer Compliant (CTC) system so that the subsidy amount can be credited directly to their account.
  3. The consumer or spouse should not have an annual taxable income above 10 lakh.
  4. The connection should not fall under the “Give It Up” voluntary subsidy surrender scheme.

How to check the subsidy?

  1. Link Aadhaar and bank account with your LPG distributor (via MyLPG website/app or distributor).
  2. Book a cylinder as usual and pay the market price.
  3. The subsidy gets credited automatically to your bank account.
  4. Check status on mylpg.in or the app using your LPG ID.

Stay alert against fake LPG delivery messages — how to verify?

Cyber experts and oil companies have advised Indane and HP Gas consumers to stay alert against fake LPG delivery messages by first verifying whether they have actually booked a cylinder before trusting any SMS related to delivery.

Customers should also check whether the message has been sent from official sender IDs such as “VK-INDANE” or “VM-INDANE.”

The company stated: “The message came from the official sender name “VM-HPGASc-S”. It contains 4 digit OTP and OTP should be used only at the time of cylinder delivery.”

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However, oil companies have also warned consumers about increasing cyber fraud involving fake delivery messages and OTP scams.

Hindustan Petroleum Corporation Limited recently advised customers not to share OTPs received through suspicious calls, WhatsApp messages, or unknown links. Bharat Petroleum Corporation Limited has also issued similar alerts, urging LPG consumers to remain cautious about fake delivery scams and fraudulent OTP requests.

Petroleum Ministry says LPG stocks “adequate”

Amid disruptions in the global energy supply chain, the Ministry of Petroleum and Natural Gas on Monday assured citizens that crude oil inventories remain stable, refineries are operating at optimum levels, and there are no fuel shortages across the country.

Addressing an inter-ministerial briefing in the national capital, Sujata Sharma, Joint Secretary (Marketing & Oil Refinery) in the said the government has taken several effective measures to ensure uninterrupted fuel supplies for consumers.

Sharma further said crude oil inventories remain stable, refineries are operating at optimum levels, and adequate stocks of petrol, diesel and LPG are available across the country with no reported dry-outs.

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Highlighting the supply position, Sharma said that over the past three days, 1.26 crore LPG cylinders had been delivered to households against 1.14 crore bookings.

“Similarly, sales of commercial LPG have exceeded 17,000 tonnes over the last three days. Sales of Auto LPG have also surpassed 762 tonnes,” she added.

Sharma also echoed Prime Minister Narendra Modi’s seven appeals to citizens to reduce fuel consumption and adopt energy-saving measures in their daily lives.

“I would like to convey to you that the Prime Minister has urged all citizens of the country to reduce their consumption of petrol and diesel. Wherever possible, utilise the metro and public transportation; opt for carpooling; prioritise railways as a mode of transportation for goods; and wherever feasible, increase the usage of electric vehicles,” she said.

(With inputs from agencies)

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