Oil Companies Warn LPG Subsidy Cut for Taxpayers
HYDERABAD: Oil marketing companies have begun sending SMS alerts to domestic LPG consumers stating that those with annual taxable income above ₹10 lakh may no longer be eligible for cooking gas subsidy.
Consumers using Indane and HPCL connections have reportedly received messages over the past few days asking them to submit an explanation within seven days. The messages warn that LPG subsidy could be stopped if no response is provided.
Consumers Asked to Clarify Income Eligibility
The SMSes advise consumers to raise complaints through the grievance portal or contact the toll-free number 1800233555. According to the messages, if any member of a household has taxable annual income exceeding ₹10 lakh, the family may become ineligible for LPG subsidy.
Domestic LPG users currently receive a subsidy of around ₹40 per cylinder.
West Asia Conflict Raises Supply Concerns
Sources said oil marketing companies are reviewing subsidy payouts amid rising losses linked to disruptions in gas supplies following the conflict in West Asia.
Commercial LPG cylinder prices were increased by ₹993 on May 1. Oil companies have reportedly raised commercial gas prices six times in 2026.
Officials are understood to be considering withdrawal of subsidy first for income tax-paying domestic consumers as part of efforts to reduce the financial burden on oil marketing companies.
IT Records Used for Verification
Oil marketing companies are said to be using income tax records to identify consumers who may not qualify for subsidy benefits.
Earlier, the Centre had urged consumers to voluntarily surrender LPG subsidy under the “Give It Up” campaign. Several consumers in Telangana had opted out at the time.
The latest move indicates that oil companies may now directly discontinue subsidies for consumers considered ineligible.
The Centre had earlier started reviewing ration card beneficiaries who also pay income tax by analysing Aadhaar-linked e-KYC and tax records. The process of removing ineligible ration card holders had already begun. Authorities are now extending similar scrutiny to domestic LPG subsidy beneficiaries.
