No subsidised refill norm for non-eKYC LPG users comes into force
New government regulations effective October 1 mandate biometric Aadhaar authentication (eKYC) for LPG users to receive subsidies. Consumers who fail to complete this process will no longer receive subsidized cylinders and must purchase market-priced refills.
Why it matters
This policy shift aims to streamline subsidy distribution and prevent leakage, though it creates immediate financial pressure on households that have not yet complied.
New regulations stipulating no subsidised cylinders will be supplied to liquefied petroleum gas (LPG) households who have not completed biometric Aadhaar authentication came into force on October 1.
Such consumers will now be supplied only 5 or 10 kg LPG cylinders at market prices, without subsidy. To access even these smaller refills, they must register unwillingness or inability to complete BAA, popularly known as eKYC, and give consent to receive the free trade LPG (FTL) refills.
The shift is bound to burn a hole in the household budget. In Hyderabad a 14.2 kg subsidised LPG cylinder costs ₹994 or around ₹70 per kg. In comparison, the 5 kg FTL refill is priced ₹846.50, while a 10kg composite cylinder is priced ₹1,801. First time users of the FTL cylinders, whose prices are linked to commercial LPG, also need to pay for the equipment.
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