Gas Cylinder Rules: IOCL Vs HPCL Vs BPCL, Which OMC Stock To Buy After LPG Prices Hike, E-KYC, Refills Rules?

A host of new rules have come into effect in regard to LPG gas cylinders in October 2026. The major is the commercial LPG price hike for the second consecutive month, while LPG refills have halted for those who have not completed their e-KYC, as LPG biometric Aadhaar authentication has become mandatory. Amidst this, Indian Oil, BPCL, and HPCL, who are the major LPG service providers for their Indane Gas, Bharat Gas, and HP Gas, are in focus. The West Asia war, geopolitical uncertainties, and the disruption to global oil and gas supply have hit all three oil marketing companies (OMCs). Amidst this, should you buy either of the OMC stocks?

Gas Cylinder New Rules From October 1, 2026

The biggest change in October is the hike of commercial LPG cylinders by Rs 62.50 to Rs 71.50 per 19 Kg cylinder. In Delhi, the 19 Kg LPG price is increased by Rs 62.50 to Rs 2,810 per cylinder, while LPG is hiked by Rs 70 in Kolkata to Rs 2,954 per cylinder. In Mumbai, commercial LPG is still below Rs 2,800 mark, at Rs 2,764.50 per cylinder, which is hiked by Rs 63.50 in the month of October. In Chennai and Bangalore, 19 Kg LPG cylinder prices are hiked by Rs 66.50 and Rs 67.

On the other hand, domestic LPG prices continue to remain unchanged since June 7, 2026. Hence, the 14.2 Kg LPG prices continue to be at Rs 942 in Delhi, at Rs 968 in Kolkata, at Rs 941.50 in Mumbai, and at Rs 957.50 per cylinder in Chennai.

City	Domestic LPG (14.2 kg)	Change	Commercial LPG (19 kg)	Change
New Delhi	₹942.00	₹0.00	₹2,810.00	+₹62.50
Kolkata	₹968.00	₹0.00	₹2,954.00	+₹70.00
Mumbai	₹941.50	₹0.00	₹2,764.50	+₹63.50
Chennai	₹957.50	₹0.00	₹2,983.00	+₹66.50
Gurgaon	₹950.50	₹0.00	₹2,828.00	+₹63.50
Noida	₹939.50	₹0.00	₹2,810.00	+₹62.50
Bangalore	₹944.50	₹0.00	₹2,898.00	+₹67.00
Bhubaneswar	₹968.00	₹0.00	₹2,988.00	+₹69.00
Chandigarh	₹951.50	₹0.00	₹2,833.00	+₹63.50
Hyderabad	₹994.00	₹0.00	₹3,065.00	+₹69.00
Jaipur	₹945.50	₹0.00	₹2,839.00	+₹63.00
Lucknow	₹979.50	₹0.00	₹2,932.50	+₹62.50
Patna	₹1,031.50	₹0.00	₹3,100.50	+₹71.50
Thiruvananthapuram	₹951.00	₹0.00	₹2,849.00	+₹65.00

The next major rule is the mandatory completion of LPG biometric Aadhaar authentication with effect from October 1, 2026. If non-PMUY LPG customers have not completed e-KYC then they likely have to buy domestic LPG cylinders at commercial rates. Further, the PMUY beneficiaries who have not completed their biometric Aadhaar would face difficulties as well.

The Oil Ministry has directed oil marketing companies like Indian Oil, BPCL, and HPCL to halt LPG subsidy benefits of customers who have not completed their biometric authentication (BAA) immediately until they complete the e-KYC process.

According to analysts at Kotak Institutional Equities, given the difficulty of raising retail prices or funding petrol/diesel losses through the budget, retail prices were not reduced much as crude prices declined from 2022 peak in their view.

In Kotak's view, the ongoing crisis reinforces the need for investments, particularly in crude oil and LNG storage. For LPG, the government has already directed refiners to expand domestic capacity by ~70%. OMCs are also likely to accelerate investments in city gas to substitute domestic LPG with PNG.

Indian Oil vs BPCL vs HPCL Share Prices

At present, BPCL stock is near Rs 299 per share on BSE, while year-to-date the stock has dropped nearly 22%. Furthermore, HPCL stock is near Rs 348 apiece and has crashed over 30% YTD. Meanwhile, Indian Oil stock dropped over 21% YTD to trade near Rs 131 currently.

"Limited flexibility to change retail prices of petrol, diesel and domestic LPG means OMCs absorb much of the volatility in crude prices, premiums, logistics costs and INR, resulting in high earnings volatility," said analysts at Kotak in their note.

Indian Oil vs HPCL vs BPCL: Which Stock To Buy?

Analysts at Kotak expect relatively elevated oil prices to keep FY2027E earnings weak, with HPCL being most vulnerable. However, as oil prices moderate, OMCs will likely be allowed to retain higher marketing margins, driving strong earnings rebound in FY2028-29E.

These analysts have raised their FY2027E crude assumption to $90/bbl (from $85/bbl), and maintain $75/bbl for FY2028E/LT. The Strait of Hormuz disruption has continued for seven months with no visibility on normalization.

"Our $90/bbl assumption for FY2027E, versus Brent at $100/bbl in 1HFY27, builds in normalization soon. Excise cuts and retail price hikes had lifted OMCs' diesel/petrol breakeven to $102-105/bbl, providing adequate cushion. With geopolitical risks and oil-price volatility elevated, a rollback appears unlikely until risks ease and prices decline materially. Maintain REDUCE on all three OMC," added the analysts.

Hence, Kotak has recommended REDUCE on all three OMCs with target price at Rs 315 on BPCL, at Rs 360 on HPCL and Rs 140 on Indian Oil.

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