OMCs launch income verification drive to identify ineligible LPG subsidy beneficiaries across India
Consumers exceeding ₹10 lakh annual income risk permanent LPG subsidy cancellation under rules
Oil companies warn users against fake LPG delivery messages and OTP fraud scams
LPG Subsidy Rules 2026: Who May Lose Benefits after New Verification Drive
OMCs tighten LPG subsidy verification while warning consumers against rising fake delivery and OTP scams
Domestic LPG cylinders stacked outside a distribution centre amid subsidy verification checks in India
Summary
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State-run oil marketing companies (OMCs) have commenced a verification drive to reduce the liquefied petroleum gas (LPG) subsidy burden by checking the annual income details of cooking gas consumers.
According to Mint, oil companies are sending warning messages to LPG users who do not fall under their defined LPG subsidy eligibility. The subsidy may be permanently discontinued if the annual taxable income of either the consumer or their spouse exceeds ₹10 lakh. Consumers are expected to respond within seven days to avoid possible cancellation of the benefit.
Understanding India’s 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 households with an annual income exceeding ₹10 lakh are not eligible for LPG subsidy, according to the government rules introduced in December 2015. While the system relied on self-declaration, now companies are implementing stricter checks using integrated verification with Income Tax Department records.
Identifying Fake LPG Messages
According to Mint, consumers can spot fake LPG delivery messages by first verifying if they actually ordered a cylinder before trusting any SMS about delivery.
Consumers must also check if the messages carry official sender IDs, such as “VK-INDANE” or “VM-INDANE”.
HPCL wrote in a post on Facebook, the messages for delivery contain 4 digit OTP and the OTP should be used only at the time of cylinder delivery. The post further warned that HP Gas representatives will never ask for OTPs over phone calls, WhatsApp messages, or suspicious links.
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What Is LPG DAC System
The Delivery Authentication Code (DAC) system is a mandatory verification system where LPG cylinders will be delivered only to the customers providing a particular code to the delivery agent.
The system helps in preventing unauthorised diversion of LPG cylinders and provides secure delivery.