LPG Crisis: How A Simple Digital DAC OTP System Is Plugging A Massive Black-Market Loophole
· Free Press Journal
India's cooking gas distribution network has long been plagued by a quiet crisis - subsidised LPG cylinders meant for households routinely ended up in the black market, diverted by unscrupulous delivery personnel and agents. With the LPG crisis now deepening due to the US-Iran war, the government's answer to this is deceptively simple - an OTP.
What Is the DAC System?
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The Delivery Authentication Code (DAC) is a one-time-use code used to verify the legitimacy of home LPG cylinder delivery, ensuring the cylinder reaches the rightful customer. When a booking is made, the customer receives the code on their registered mobile number, which must be shown to the delivery person before the cylinder changes hands.
Big Update For LPG Users, Government Makes Aadhaar e-KYC MandatoryGovt has expanded coverage of the DAC system
Ever since the crisis began, the government has significantly scaled up this system, with DAC coverage now reaching nearly 72 percent of deliveries, up from 53 percent earlier. The Ministry of Petroleum and Natural Gas has directed oil companies to ensure the DAC system is used in at least 80 percent of LPG deliveries, making OTP verification mandatory for the majority of cylinders.
Oil Marketing Companies (OMCs) have introduced the DAC system - sent via SMS and shared with delivery personnel - to ensure verified delivery, with IVRS/SMS refill booking also implemented nationwide, providing alerts at key stages including booking, cash memo generation, and delivery.
Pune Enforces OTP-Based LPG Delivery, 96-Hour Deadline Set, Says Jitendra DudiHow DAC helps catch miscreants
If distributors fail to meet the DAC requirement, the system flags cylinders as still in the agency's inventory even though they have been delivered -creating a digital paper trail that exposes irregularities and improves transparency across the supply chain.
How to get DAC activated in your area
Consumers can ensure they receive DAC codes by taking these steps:
- Link your mobile number to your LPG consumer ID via your distributor or the Indane/HP/Bharat Gas app.
- Book via IVRS by calling your provider's helpline - the DAC is sent automatically via SMS upon booking.
- Update details online at iocl.com or your respective oil company's portal.
- Visit your distributor with photo ID and consumer ID if SMS is not being received.
- If the OTP does not arrive, customers can show their Aadhaar card as an alternate identity verification to receive the cylinder.
With the government pushing toward an 80 percent DAC compliance target, the system represents a low-cost, high-impact fix to a problem that has cost the exchequer significantly. For millions of households, it also means the subsidised cylinder they paid for will actually reach their doorstep.