The Government of India has reinforced its efforts to ensure efficient, transparent, and inclusive distribution of domestic LPG and direct benefit transfers of subsidies through a series of robust reforms. This was stated by the Minister for Petroleum and Natural Gas, Hardeep Singh Puri, in a written reply to a Starred Question in the Rajya Sabha. He highlighted that the implementation of key initiatives such as the PAHAL (DBTL) scheme, Aadhaar-based verification, biometric authentication, and large-scale deactivation of ineligible or duplicate connections has greatly enhanced the targeted delivery of LPG subsidies.
The Minister informed the House that over 4.08 crore fake, inactive, duplicate, or non-existent LPG connections have been blocked or deactivated as of July 1, 2025. These measures have not only helped in plugging leakages in subsidy distribution but have also curbed the diversion of subsidised LPG for commercial purposes. To further empower consumers and increase transparency, an IVRS/SMS-based refill booking system has been rolled out nationwide, allowing customers to track refill booking, cash memo generation, and delivery via SMS alerts. Oil Marketing Companies (OMCs) have also introduced a Delivery Authentication Code (DAC), which is sent to consumers by SMS and must be shared with delivery personnel, ensuring genuine transactions.
To curb malpractices in LPG distribution, regular and surprise inspections are being conducted by field officers of OMCs. Additionally, officials from various regional, zonal, and divisional offices, as well as members of the Anti-Adulteration Cell, Quality Reassurance Cells, and Vigilance Departments, are involved in random checks across distributor godowns, showrooms, delivery routes, and customer points. These efforts aim to ensure strict compliance and prevent misuse.
A key component of the government’s reforms is the PAHAL Scheme, implemented in January 2015, which facilitates the direct transfer of LPG subsidies into consumers’ bank accounts. Under this mechanism, consumers purchase cylinders at market rates and receive the subsidy amount directly in their bank accounts. The system also includes SMS notifications for successful transfers and alerts in case of transaction failures. According to Puri, the scheme has played a crucial role in eliminating ghost beneficiaries and duplicate accounts.
To further strengthen data integrity, the government has introduced the Common LPG Database Platform (CLDP) to identify and remove duplicate connections based on key identifiers such as Aadhaar number, bank account details, ration card, and address. In parallel, the biometric Aadhaar authentication drive has gained momentum, with 67% of existing Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries authenticated biometrically as of July 1, 2025. New PMUY consumers now undergo biometric verification before receiving a connection.
In a bid to ensure subsidies reach only eligible consumers, around 8.49 lakh PMUY connections have been terminated following deduplication exercises. Furthermore, a Standard Operating Procedure (SOP) was issued in January 2025 to eliminate inactive PMUY connections that had not been refilled after installation. As a result, around 12,000 such connections have been terminated.
Puri noted that while most subsidy transactions are completed within two days of LPG delivery, some failures occur due to reasons such as Aadhaar deseeding, account closures, bank mergers, or inactive Aadhaar numbers. The government has made concerted efforts to reduce such failures by ensuring Aadhaar Transfer Compliance. As of July 1, 2025, approximately 92.44% of the 33.05 crore active LPG consumers have Aadhaar seeded in the OMCs’ databases, while 86.78% of the 30.63 crore DBTL consumers are Aadhaar Transfer Compliant.
To regulate the overall distribution and marketing of LPG, the Government has enforced the “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000,” along with stringent Marketing Discipline Guidelines for distributors. Any irregularities found are dealt with as per the provisions of these guidelines or the Distributorship Agreement, ensuring accountability in the system.
The impact of the PAHAL scheme has been positive, as reflected in a third-party evaluation conducted by the Research and Development Initiative (RDI), which found that over 90% of beneficiaries expressed satisfaction with the subsidy process. The report also emphasised the importance of improving grievance redressal systems, targeting subsidies more effectively toward economically weaker sections, and enhancing safety awareness through localised media outreach.
During the financial year 2024–25, approximately 194 crore LPG refills were delivered, with complaints recorded in only 0.08% of cases. These were largely related to subsidy delays or delivery issues, indicating the system’s overall efficiency. To further enhance customer service, the government has strengthened its grievance redressal mechanisms. Consumers can now raise issues through toll-free numbers, OMC websites, mobile apps, CPGRAMS, social media, WhatsApp, chatbots, and even directly at distributor offices. A dedicated helpline (1906) is also in place for emergency cases such as gas leakages and accidents.
