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MONDAY, 22 JUNE 2026

Strict enforcement of KYC for LPG users necessary

ADELMO FERNANDES, Vasco
Published Mar 18
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 The Ministry of Petroleum and Natural Gas has reportedly made biometric Aadhaar authentication (e-KYC) mandatory for all domestic LPG consumers.  This policy decision aims to bring greater transparency, accountability, and equity to LPG distribution. For years, the diversion of subsidized domestic LPG cylinders for commercial purposes has strained supply chains, distorted pricing, and deprived genuine households of timely access.  Domestic cylinders are heavily subsidized to support household consumption, making them significantly cheaper than commercial cylinders. This price gap has encouraged illegal diversion, leading to an artificial shortage for legitimate domestic users. By enforcing KYC norms, authorities can track end users, identify irregularities, and curb such practices. Hoarding and black marketing only escalate shortages. KYC verification can help create a more robust consumer database. This reduces the chances of duplicate or fraudulent connections and enables better monitoring of consumption patterns.  Penalizing offenders and dismantling black-market networks are equally important. Coordination between local authorities, distributors, and enforcement agencies will be necessary to create a deterrent effect. While challenges remain, this initiative lays the groundwork for a more transparent and efficient LPG distribution that prioritizes the needs of genuine consumers.



 


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