‘E-KYC not mandatory for all LPG customers’:Order applies to only those who have not done it before, clarifies Centre

The Central Government has responded to reports claiming that gas connections would be cut if customers did not complete e-KYC. The Ministry of Petroleum stated that eKYC is only required for customers whose verification has not been done yet. The government said this is not a new rule. The information shared by the ministry on social media is part of an existing campaign. Its purpose is simply to encourage more gas customers to complete their biometric verification to prevent fraud in the system. Who needs to do e-KYC and who doesn’t? Can do eKYC from home Customers do not need to visit the gas agency for biometric authentication. The ministry has informed that the eKYC process can be completed easily and free of cost while sitting at home. Customers can complete this themselves through the mobile app of their respective gas company. For eKYC, only ‘Aadhar Card’ and ‘Registered Mobile Number’ are required. Will control fake customers and black marketing The government says that the main objective of doing eKYC is to bring transparency in the system. This helps in removing ‘ghost consumers’ – those fake gas connections that are running in someone else’s name. Additionally, this will also help in preventing black marketing of LPG. What does the law actually say? According to the Supreme Court’s 2018 decision, the government can make Aadhar mandatory only for those services or benefits where money is being given directly as subsidy. Gas connection in itself is not a subsidy. Anyone can get a connection at market price and millions of people buy gas by paying full price without any government assistance. There is no legal basis for making Aadhaar biometric mandatory for such people. The law states that e-KYC is mandatory only for those who receive subsidies under ‘Ujjwala’ or ‘PAHAL’ schemes. For everyone else, it is optional. Similar confusion existed in 2024 as well This confusion is not being spread for the first time. In July 2024, gas agencies threatened to cut connections of customers who were not taking subsidies but were refusing to do e-KYC to meet their targets. At that time, HPCL clarified in response to an RTI that they had not issued any such mandatory notice. LPG crisis in the country due to Iran war Due to the war between America-Israel and Iran, there is a shortage of LPG across the country. There are long queues outside gas agencies. Black marketing and hoarding of gas cylinders is also happening. Due to this, a chaotic situation had emerged after the news related to e-KYC. However, now after the government’s clarification, the situation is expected to normalize. LPG cylinder booking rules changed three times Supply crisis due to near closure of Strait of Hormuz The biggest challenge for India is the closure of the Strait of Hormuz. This is approximately 167 km long waterway that connects the Persian Gulf to the Arabian Sea. Due to the Iran war, this route is no longer safe. Given the risks, no oil tankers are passing through there. 20% of the world’s petroleum passes through here. Countries like Saudi Arabia, Iraq and Kuwait also depend on it for their exports. India imports 50% of its crude oil needs and 54% of LNG through this route. Iran itself exports through this route.