Gas Cylinder (Third Amendment) Rules 2026 Add CNG Conditions

New Rules Establish Conditions for CNG and CBG Mobile Refueling

The Gas Cylinder (Third Amendment) Rules 2026 establish a regulatory framework for mobile refueling units used to dispense compressed natural gas (CNG) and compressed biogas (CBG). The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade, notified the amendment on September 21, 2026, and the final notification was published in the Official Gazette on September 23, 2026. The amended provisions insert specific requirements into the Gas Cylinders Rules, 2016 covering ownership, equipment approval, permitted applications, safety controls, operating procedures, and recordkeeping.

Ownership and Approval Requirements for Mobile Refueling Units

Under the amended framework, a CNG mobile refueling unit must be owned by a City Gas Distribution company authorized for the relevant geographical area, while a CBG mobile refueling unit must be owned by a licensee operating under Form E&F. Each unit must have an assembly approved by the Chief Controller, covering its storage cascade, dispensing system, piping, hoses, pressure-regulating devices, safety fittings, emergency shutdown system, layout, operating procedures, and emergency response arrangements. The provisions also require a fail-safe, manually operated emergency shutdown system accessible from at least two locations and capable of isolating relevant lines and stopping dispensing when activated.

The rules place the mobile units within the existing licensed gas distribution and filling framework in India. CNG and CBG units must be filled or charged only at designated areas of CNG mother stations or licensed CNG/CBG filling premises, with the applicable mobile unit details reflected in the approved layout and licensing arrangements. The amended provisions also require refueling operations to remain under the supervision of an authorized and trained responsible person. Training records must be maintained and made available to inspecting authorities when required, reinforcing operational accountability during both filling and dispensing activities.

Approved Applications and Refueling Locations

The amended rules restrict CNG and CBG dispensing to approved onboard gas cylinders fitted as fuel tanks in specified vehicles and equipment. Permitted applications include non-transport vehicles operating in mines covered by the Mines Act, notified ports, Indian Railways locomotives, and approved ships or boats operating on inland or seaborne waterways. Engines being tested at government-authorized testing laboratories are also covered. In exceptional circumstances, the Chief Controller may permit refueling of heavy equipment, machinery, or other heavy vehicles that cannot reach conventional fuel stations, subject to safeguards, site inspection, risk assessment, and specified conditions.

The permitted operating framework also establishes controls over where dispensing can occur. Mobile refueling units may dispense CNG or CBG only at premises licensed in Form G, subject to the specific provisions of the amended rules, while the units themselves must remain connected to the relevant licensed filling premises. The rules expressly prohibit public retail dispensing on public roads, in residential areas, commercial parking areas, basements, enclosed premises, or other locations that have not received specific approval. These restrictions distinguish specialized mobile refueling operations from unrestricted public fuel retailing.

Safety Distances and Equipment Controls

During dispensing, prescribed safety distances must be maintained around each mobile refueling unit. For storage cascades with a total water capacity of up to 4,500 liters, the minimum distance from buildings and boundaries is four meters. For capacities above 4,500 liters, the minimum distance is five meters. The Chief Controller may require greater separation from public roads, ignition sources, overhead electrical lines, drains, basements, hazardous storage areas, or other vulnerable locations. A unit exceeding 10,000 liters of total water capacity cannot be used unless the Chief Controller specifically permits it with additional safeguards.

The dispensing area must be physically protected with barriers and conspicuous warning signs in English, Hindi, and the local language. Smoking, open flames, mobile phone use, hot work, unauthorized electrical equipment, and public access are prohibited within the controlled area. The storage cascade cylinders must comply with IS-7285, ISO-9809, ISO-11119, or another code accepted by the Chief Controller, with a maximum allowable working pressure of 250 bar gauge unless a different pressure is specifically approved. Hoses and couplings must be suitable for CNG/CBG service, withstand a burst pressure of at least four times maximum operating pressure, and include specified shut-off, breakaway, and bonding or earthing provisions.

Vehicle Approval and Emergency Procedures

Before vehicles or equipment are refueled, the proposed list must be vetted by the competent authority responsible for the relevant operating location. Depending on the application, this can include the Directorate General of Mines Safety, port authorities, railway administration, or the Inland Waterways Authority of India. The approved list must be maintained at the site and updated before a newly added vehicle or item of equipment is refueled. This requirement creates a documented approval process linking the mobile refueling activity to the authority responsible for the underlying mine, port, railway, waterway, or testing operation.

Refueling must stop while a mobile refueling unit is being exchanged. The applicable valves must be closed, the dispensing system depressurized where necessary, and the emergency shutdown system kept activated throughout the exchange operation. The dispensing area must also allow unobstructed movement of emergency response vehicles, including fire tenders and ambulances. Before dispensing begins, operators must visually check the hoses, couplings, valves, dispenser, and receiving fuel system and confirm that they are free from leaks. These procedures apply to specialized operations across India under the conditions established by the amended rules.

Emergency Plans and Operational Records

Each approved dispensing site must have a site-specific emergency plan covering actions to be followed during an emergency. The plan must be submitted to the relevant authorities, displayed at the site, communicated to operators, and tested through periodic mock drills. The requirements are designed to establish a documented response process rather than relying only on equipment-level safety measures. Operators must also maintain records covering mobile refueling unit filling and dispensing activities, pressure readings, vehicle and equipment details, personnel information, leak checks, emergency shutdown checks, hose testing, maintenance, defects, repairs, and incidents.

The recordkeeping requirements provide a traceable operating history for each mobile refueling activity and its associated equipment. The licensee under Form E&F or the relevant City Gas Distribution entity must produce these records when requested by an inspecting authority. During movement, the mobile refueling unit must additionally comply with applicable requirements governing the transportation of cylinders under the Gas Cylinders Rules and other laws in force. The framework therefore addresses the unit across its operating cycle, from filling and transportation to dispensing, inspection, emergency preparedness, maintenance, and documentation.

Industry Impact & Outlook

The amended framework provides a defined compliance pathway for specialized CNG and CBG mobile refueling operations serving mines, ports, railways, waterways, testing facilities, and approved heavy equipment applications. Its detailed ownership, equipment approval, site, safety, supervision, and recordkeeping conditions are likely to make compliance requirements more structured for operators while limiting the use of mobile units for general public retailing. For gas suppliers and specialized equipment users in India, the practical focus will be on obtaining the required approvals, maintaining compliant equipment and operating records, and meeting site-specific safety conditions as permitted applications develop.

Frequently Asked Questions

What do the new rules regulate?
The amended rules regulate CNG and CBG mobile refueling units, including ownership, equipment approval, filling, dispensing, safety systems, approved applications, emergency procedures, and recordkeeping. They allow mobile dispensing for specified vehicles and equipment at specifically approved locations while restricting public retail dispensing. The framework also establishes requirements for storage cascades, hoses, couplings, emergency shutdown systems, trained personnel, safety distances, vehicle approval lists, emergency plans, and operational records. The rules apply within the broader framework of the Gas Cylinders Rules, 2016 and related licensing requirements.

Can CNG or CBG mobile units be used for public retail refueling?
No. The amended provisions specifically state that CNG/CBG mobile refueling units cannot be used for public retail dispensing on public roads, residential areas, commercial parking areas, basements, enclosed premises, or other locations that have not been specifically approved. Their permitted use is focused on approved onboard fuel cylinders in specified vehicles and equipment, including certain mine vehicles, locomotives, ships, boats, testing engines, and exceptional heavy-equipment applications approved by the Chief Controller. These restrictions apply to mobile refueling operations under the amended framework.