Government Moves to Restrict LPG Subsidy for High-Income Households

The Central government is stepping up measures to phase out cooking gas subsidies for households exceeding an annual income threshold of Rs 10 lakh.

To implement this policy, oil marketing companies—including Indian Oil, Bharat Petroleum, and Hindustan Petroleum—are now accessing income data from the Income Tax Department. Using PAN card information, these companies are verifying consumer earnings and compiling lists of those who fall outside the subsidy eligibility criteria.

The income-based restriction framework has been in place since December 2015, though enforcement was previously voluntary. Under the revised approach, authorities will assess the combined income of both the LPG connection holder and their spouse. Should either person's annual earnings surpass the Rs 10 lakh mark, the household becomes ineligible for subsidy support.

Many consumers have already begun receiving SMS notifications about income verification procedures. These messages indicate that officials have identified income levels exceeding the stipulated threshold based on IT records. Recipients are given a seven-day window to lodge objections or provide clarifications. Failure to respond within this period will result in subsidy discontinuation.

Government officials anticipate the measure will reduce the fiscal burden of subsidies and enable reallocation of resources toward other welfare initiatives.

The policy includes important carve-outs: economically vulnerable households and beneficiaries of the Pradhan Mantri Ujjwala Yojana remain exempt from the income restriction. Officials confirmed that Ujjwala scheme participants will maintain their subsidy entitlements.

Consumers earning below the Rs 10 lakh threshold who have received warning notices are advised to contact their local gas distribution agency or file complaints through the designated grievance redressal portal.