Govt Notifies New CNG/CBG Mobile Refuelling Unit Rules

The government has notified the Gas Cylinder (Third Amendment) Rules, 2026, introducing specific conditions for CNG and compressed biogas (CBG) mobile refuelling units (MRUs), including their ownership, operation, safety systems and permitted applications.

The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), issued the notification on September 21, 2026. The amended rules will come into force from the date of their final publication in the Official Gazette.

The amendment adds provisions to the Gas Cylinders Rules, 2016 allowing CNG/CBG to be dispensed into motor vehicles or specified equipment through mobile refuelling units. The new provisions set out conditions covering the design, ownership, filling, dispensing and operation of these units.

CNG/CBG Mobile Refuelling Unit Ownership And Equipment

Under the amended rules, a CNG MRU must be owned by a city gas distribution (CGD) company authorised for the relevant geographical area. A CBG MRU must be owned by a licensee operating under Form E&F.

Both types of MRUs must have an assembly approved by the Chief Controller. This includes the storage cascade, dispensing system, piping, hoses, pressure-regulating devices, safety fittings, emergency shut-down (ESD) system, layout, operating procedures and emergency response arrangements.

The units must have a fail-safe, manually operated ESD system accessible from at least two locations. The system must be capable of isolating the cascade and dispensing lines, shutting off CNG/CBG supply sources and immediately stopping dispensing operations. It must also be periodically tested according to the manufacturer's procedure.

Where CNG/CBG Mobile Refueling Units Can Be Used

The rules limit dispensing to approved onboard CNG/CBG cylinders fitted as fuel tanks. Permitted applications include non-transport vehicles operating in mines covered under the Mines Act or notified ports, Indian Railways locomotives, approved ships and boats operating on inland or seaborne waterways, and engines undergoing testing at government-authorised testing laboratories.

The Chief Controller may also permit refuelling of heavy equipment, machinery or other heavy vehicles that cannot be brought to fuel dispensing stations. Such permission can be subject to additional safeguards, site inspection, risk assessment and other specified conditions.

MRUs must be filled or charged only at designated areas of CNG mother stations or licensed CNG/CBG filling premises. The relevant MRU must also be attached to the licensed premises and reflected in the approved layout and licence.

The amended rules also state that CNG/CBG MRUs cannot be used for public retail dispensing on public roads, in residential areas, commercial parking areas, basements, enclosed premises or other locations that have not been specifically approved.

Safety Requirements For CNG/CBG Mobile Refueling

During dispensing, prescribed safety distances must be maintained around the MRU. The minimum distance from buildings and boundaries is four metres for storage cascades with a total water capacity of up to 4,500 litres and five metres for capacities above 4,500 litres. The Chief Controller can prescribe greater distances from roads, ignition sources, electrical lines, drains, basements and other vulnerable locations.

MRUs with a total water capacity exceeding 10,000 litres cannot be used unless specifically permitted by the Chief Controller with additional safeguards.

The dispensing area must be physically protected and display warning signs in English, Hindi and the local language. Smoking, open flames, mobile phone use, hot work, unauthorised electrical equipment and public access are prohibited within the dispensing area. Refuelling must be conducted under the direct supervision of an authorised and trained responsible person.

The rules also prescribe requirements for the cylinders, hoses and couplings used by MRUs. Storage cascade cylinders must conform to specified standards, including IS-7285, ISO-9809 and ISO-11119, or another code accepted by the Chief Controller. Their maximum allowable working pressure is capped at 250 bar gauge unless a different pressure is specifically approved.

Hoses and couplings must be suitable for CNG/CBG service, have a minimum burst pressure of four times the maximum operating pressure, and incorporate provisions including breakaway couplings, excess-flow or quick shut-off arrangements and bonding or earthing.

Vehicle Approval And Emergency Procedures

The list of vehicles or equipment proposed for CNG/CBG refuelling must be vetted by the relevant competent authority, including the Directorate General of Mines Safety, port authorities, railway administration or the Inland Waterways Authority of India, depending on the application. The approved list must be maintained at the site and updated before a new vehicle or equipment is refuelled.

Refuelling must be suspended while an MRU is being exchanged. The rules require valves to be closed, the dispensing system to be depressurised where necessary and the ESD to remain activated during the exchange operation.

The dispensing area must allow unhindered access for emergency response vehicles, including fire tenders and ambulances. Operators must also check hoses, couplings, valves, the dispenser and the receiving fuel system for leaks before dispensing begins.

A site-specific emergency plan must be prepared for each location and submitted to the relevant authorities. The plan must be displayed at the site, communicated to operators and tested through periodic mock drills.

The licensee or CGD entity must maintain records covering MRU filling and dispensing, pressure readings, vehicle and equipment details, operator details, leak checks, ESD checks, hose testing, maintenance, defects, repairs and incidents.

The notification defines a CNG/CBG MRU as a mobile assembly comprising storage, dispensing and associated safety equipment mounted on a vehicle, trailer, skid or another mobile platform for dispensing CNG/CBG into approved onboard fuel cylinders or fuel systems at specifically approved sites.