Drive by OMCs for Cancellation of LPG Subsidy Triggers Panic
The difference was that while it was voluntary earlier, it will now be mandatory for those with income exceeding Rs 10 lakh annually.
Hyderabad:Oil marketing companies (OMCs) have begun sending SMSs to consumers over the weekend that their LPG subsidy would be cancelled if their annual income exceeded Rs 10 lakh, triggering anxiety among cooking gas users. The drive to cancel subsidy has been intensified in Telangana in wake of virtual meetings of dealers with the officials from Union ministry of petroleum and natural gas on Monday.
While many questioned the quantum of subsidy presently provided even for lower income groups, others raised an alarm. “For over a decade, the subsidy being credited to our bank accounts has remained insignificant, at `40,” said M. Srinivas, state convener of the Urban Development Forum.
“While most consumers have already given up the subsidy, the latest drive clearly reflects further burdening of the common man. When fuel prices were low and when the government was importing discounted oil from Russia, the benefits never reached the people,” Srinivas said. “This is a clear indication that the fuel prices may further go up.”
A. Ramprasad, a techie working for an MNC, who received the message felt that those who had updated their LPG connection details were the first to receive the SMS. “Since it is a government decision there is nothing much can be done. I hope that the ongoing drive will achieve the aimed objective,” Ramprasad said.
Telangana has about 1.3 crore active domestic LPG connections. The state requires some 2.15 lakh to 2.5 lakh domestic cylinders per day. Domestic users account for nearly 86 per cent of the total LPG requirement in the state. Over 10.35 lakh connections have been issued under the extended Pradhan Mantri Ujjwala Yojana (PMUY-II) as of early 2026.
According to sources in the petroleum industry, the drive has just begun and will cover most of the consumers given that bank accounts are linked to Aadhaar, which are further linked with LPG connections along with KYC. “Even if the finances are not reflected in the ITR filed by individuals, since the bank accounts and transactions of the people particularly with sound incomes (close to `10 lakh) remain under the radar of I-T authorities. They calculate the income levels and the list is passed on to the gas companies,” explained a trader.
According to the Union government, the 'Give It Up' appeal encouraging consumers to drop LPG subsidy had drawn a good response. “The response reflected a strong sense of collective responsibility, helping expand access to clean cooking fuel and strengthening direct benefit transfer systems across households in India,” posted MyGovIndia handle on X on Monday.
Officials said the rule has existed since December 2015. The difference was that while it was voluntary earlier, it will now be mandatory for those with income exceeding Rs 10 lakh annually.
Consumers must respond within seven days if they have objections. Otherwise, authorities will discontinue the subsidy. “This is nothing new and only a follow-up of the ‘Give It Up’ drive of the past. Since taxpayers file ITR, the information is being processed and the messages are generated. While most like me have already given the subsidy voluntarily, it is the time for high income groups,” said a state-level coordinator for OMCs based in the city.
