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Gas Cylinders Rules amended for CNG/CBG Mobile Refuelling Units: who may own one, where it may dispense and what safety conditions apply

DPIIT has notified the Gas Cylinder (Third Amendment) Rules, 2026 (G.S.R. 831(E) dated 21 September 2026). A new Condition 22 in Form G lays down additional conditions for CNG/CBG Mobile Refuelling Units — ownership, the vehicles they may refuel, safety distances and records. Public retail dispensing is barred.

Key facts

Published
21 September 2026
Section
Licences
What it is
Rule change
In force
On final publication in the Official Gazette (notification dated 21 September 2026)
Who it affects
City Gas Distribution companies, CBG producers and Form E&F licensees, mine and port operators, Indian Railways, inland vessel operators
Editor21 September 2026 · 4 min read

In 30 seconds

  • G.S.R. 831(E) is dated 21 September 2026; the rules come into force on final publication in the Official Gazette.
  • A CNG MRU must be owned by the City Gas Distribution company authorised for the area; a CBG MRU by a licensee under Form E&F.
  • MRUs may refuel only non-transport vehicles in mines or notified ports, Indian Railways locomotives, approved ships or boats, and engines under test at authorised laboratories.
  • Minimum distance from buildings and boundaries: 4.0 m for cascades up to 4,500 litres water capacity; 5.0 m above that.
  • An MRU above 10,000 litres total water capacity needs specific permission of the Chief Controller.
  • MRUs cannot be used for public retail dispensing on public roads, residential areas, commercial parking areas, basements or enclosed premises.

What has been notified

The Department for Promotion of Industry and Internal Trade (DPIIT) has notified the Gas Cylinder (Third Amendment) Rules, 2026 by G.S.R. 831(E) dated 21 September 2026, under sections 5 and 7 of the Explosives Act, 1884. The draft was published on 10 June 2026 (G.S.R. 461(E)) for objections and suggestions, which the Central Government has considered. The rules come into force on their final publication in the Official Gazette.

Two changes are made to the Gas Cylinders Rules, 2016:

  • A proviso is added to rule 6(4): CNG/CBG may be dispensed into motor vehicles or the equipment specified in the new Condition 22.
  • A new Condition 22 is inserted in Form G — “Additional conditions for CNG/CBG Mobile Refueling Units (MRUs)”.

What an MRU is

A mobile assembly — storage cascade, dispensing unit, piping, hoses, valves, safety fittings, emergency shut down system and associated equipment — mounted on a vehicle, trailer, skid or other mobile platform, for dispensing CNG/CBG into approved on-board fuel cylinders at a site specifically approved for the purpose.

Ownership and attachment

PointCondition
CNG MRUOwned by a City Gas Distribution (CGD) company authorised for the geographical area
CBG MRUOwned by a licensee under Form E&F
AssemblyApproved by the Chief Controller — cascade, dispensing system, hoses, ESD system, layout, operating procedure and emergency response arrangement
Filling the MRUOnly in the designated area of a CNG mother station or premises licensed in Form E&F; the MRU is attached to that station or premises and the licence is amended accordingly
Where it dispensesOnly in premises licensed in Form G, except CNG mother / daughter / daughter-booster / online stations

What may be refuelled

  • Non-transport vehicles operating within mines covered by the Mines Act, 1952, or within ports notified by the Ministry of Ports, Shipping and Waterways.
  • Locomotives of the Indian Railways.
  • Ships or boats on inland or seaborne waterways, approved by the competent maritime or inland waterways authority.
  • Engines under test at testing laboratories authorised by the Central Government.

In exceptional circumstances, for reasons recorded in writing and with additional safeguards, the Chief Controller may permit refuelling of heavy equipment, machinery or heavy vehicles that cannot be brought to a fuel dispensing station. The list of vehicles must be vetted by the Directorate General of Mines Safety, the Conservator of Ports, the railway administration, the Inland Waterways Authority of India or other competent authority, and kept at the site.

Safety conditions

Total water capacity of cascade (litres)Minimum distance from buildings and boundaries
Up to 4,5004.0 m
More than 4,5005.0 m
  • An MRU above 10,000 litres total water capacity is not to be used unless specifically permitted by the Chief Controller.
  • A fail-safe, manually operable ESD system, operable from at least two accessible locations.
  • Cascade cylinders designed to IS-7285, ISO-9809, ISO-11119 or another accepted code, with maximum allowable working pressure not exceeding 250 Bar gauge unless specifically approved.
  • Dispensing area fenced or barricaded, with warning signs in English, Hindi and the local language; no smoking, open flame, mobile phone use or hot work.
  • A trained responsible person of the CGD entity or Form E&F licensee to supervise refuelling.
  • A site-specific emergency plan, submitted to the District Magistrate, fire service and police, displayed and tested through mock drills.

What licensees should do

CGD companies and Form E&F licensees planning mobile refuelling should get the MRU assembly approved, have the parent station’s licence amended, obtain the vetted vehicle list, and keep the records the condition requires — filling, dispensing, pressure readings, leak and ESD checks, hose testing, maintenance and incidents — ready for inspection.

Questions and answers

Who can own a CNG or CBG Mobile Refuelling Unit?

A CNG MRU must be owned by a City Gas Distribution company authorised for the concerned geographical area. A CBG MRU must be owned by a licensee under Form E&F.

Can an MRU sell CNG to the public on a road?

No. The condition says a CNG/CBG MRU shall not be used for public retail dispensing on public roads, residential areas, commercial parking areas, basements, enclosed premises or any place not specifically approved.

Which vehicles can be refuelled by an MRU?

Non-transport vehicles operating within mines or notified ports, locomotives of the Indian Railways, approved ships or boats, and engines under test at authorised laboratories. The Chief Controller may, in exceptional circumstances, permit heavy equipment or heavy vehicles that cannot be brought to a dispensing station.

What safety distance must be kept?

A minimum of 4.0 metres from buildings and boundaries where the total water capacity of the cascade is up to 4,500 litres, and 5.0 metres above that. The Chief Controller may specify higher distances from roads, ignition sources, overhead electrical lines and similar locations.

TopicsGas Cylinders Rules 2016CNGCBGMobile Refuelling UnitMRUChief ControllerForm GDPIITExplosives Act 1884

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Editor

TaxClue News reports changes in tax, GST, trade and company law from the source document, and links that document in every story.

Published 21 September 2026. Updated 4 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.

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