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A mobile CNG or CBG unit cannot simply be taken to an industrial site and used as a portable fuel station.
That is one of the clearest practical points emerging from the Gas Cylinder (Third Amendment) Rules, 2026.
The Central Government has amended the Gas Cylinder Rules, 2016 to create detailed conditions for CNG and CBG Mobile Refueling Units, commonly called MRUs. The amendment changes Rule 6(4) and inserts a new Condition 22 in Form G covering ownership, approvals, filling, dispensing, equipment safety, operating locations, emergency arrangements and record-keeping.
The notification is dated 21 September 2026. The Gazette was published on 23 September 2026, and the rules state that they take effect from the date of final publication in the Official Gazette.
For CGD companies, CBG operators, mines, ports, railway operations, waterway operators, and businesses using large equipment that cannot easily reach a conventional fuel station, the amendment deserves a close reading.
| Particular | Details |
| Name of Rules | Gas Cylinder (Third Amendment) Rules, 2026 |
| Notification Number | G.S.R. 831(E) |
| Issuing Ministry | Ministry of Commerce and Industry |
| Department | Department for Promotion of Industry and Internal Trade |
| Notification Date | 21 September 2026 |
| Gazette Publication Date | 23 September 2026 |
| Commencement | Date of final publication in Official Gazette |
| Governing Act | Explosives Act, 1884 |
| Rules Amended | Gas Cylinder Rules, 2016 |
| Rule Changed | Rule 6(4) |
| Form Changed | Form G |
| New Provision | Condition 22 |
| Main Subject | CNG/CBG Mobile Refueling Units |
| Earlier Draft | G.S.R. 461(E), dated 10 June 2026 |
| Main Business Areas Affected | CGD, CBG, mines, ports, railways, waterways, heavy equipment and industrial operations |
Before finalising the amendment, the Government had published draft rules on 10 June 2026. Objections and suggestions were invited for 30 days, and the final Gazette records that the representations received were considered.
The amendment has two main parts.
Rule 6(4) Has Been Amended
A proviso has been inserted in Rule 6(4) permitting CNG/CBG to be dispensed into motor vehicles or equipment covered by the new Condition 22 of Form G.
This provision needs to be read together with Condition 22. It should not be interpreted as general permission for unrestricted mobile fuel dispensing.
Condition 22 Has Been Added to Form G
A new Condition 22 titled “Additional conditions for CNG/CBG Mobile Refueling Units (MRUs)” has been inserted after Condition 21.
This new condition deals with almost the entire operating cycle of an MRU:
Condition 22 is thus much more than just a permit to do mobile refueling.
In simple terms, an MRU is a mobile gas storage and dispensing arrangement.
The amendment describes it as a mobile assembly containing equipment such as:
The system can be installed on:
Its purpose is to dispense CNG or CBG into approved onboard fuel cylinders or fuel systems at a site specifically approved for such use.
That last condition matters. The word “mobile” describes the unit. It does not mean the dispensing location is unrestricted.
The rules do not permit any company with a suitable vehicle to own and operate a CNG MRU.
A City Gas Distribution company must own a CNG MRU authorised for the geographical area concerned.
The MRU must also comprise an assembly approved by the Chief Controller.
That assembly includes more than the cylinders. The approval covers components and arrangements such as:
To a CGD operator, the compliance issue is not just about whether it has adequate storage cylinders for refueling operations. The entire design of the refueling setup must meet the required framework.
CBG follows a different ownership route.
A licensee must own a CBG MRU under Forms E & F.
The CBG MRU must also have an approved assembly containing the prescribed storage, dispensing, pressure-control, and safety components.
This difference between CNG and CBG ownership should be checked at the beginning of a project.
A business should not first purchase or fabricate an MRU and only later determine whether its existing authorisation actually permits it to own and operate the unit.
| Compliance Point | CNG MRU | CBG MRU |
| Who can own it? | CGD company | Form E & F licensee |
| Geographical area condition | CGD company must be authorised for concerned geographical area | Not stated in the same manner for CBG ownership |
| Assembly approval | Required | Required |
| ESD requirements | Applicable | Applicable |
| Cylinder standards | Applicable | Applicable |
| Site safety conditions | Applicable | Applicable |
| Records | Applicable | Applicable |
| Emergency planning | Applicable | Applicable |
The biggest distinction lies in ownership. Most of the operational and safety requirements under Condition 22 apply to both.
This is where businesses need to be careful.
The amendment does not say that any commercial vehicle, truck, machine or fleet vehicle can automatically be served through an MRU.
CNG/CBG may be dispensed only into approved onboard cylinders fitted as fuel tanks to the vehicles or equipment covered by the provision. Valid filling permission and other applicable statutory approvals must also be available.
The main categories are set out below.
| Vehicle or Equipment | Position Under the Amendment |
| Non-transport vehicles operating in specified mines | Covered |
| Non-transport vehicles operating in notified ports | Covered |
| Indian Railways locomotives | Covered |
| Ships or boats operating on approved waterways | Covered subject to relevant approvals |
| Engines under test at authorised testing laboratories | Covered |
| Heavy machinery/equipment unable to reach a fuel station | Can be considered in exceptional circumstances |
Non-Transport Vehicles Used in Mines
The rule covers non-transport vehicles operating within areas of mines falling under the law referred to in the notification.
This may be particularly relevant for mining machinery that operates continuously within a mining site and is difficult to move outside the premises solely for refueling.
The vehicle list is still subject to the required vetting process. The mine-related provision should therefore not be treated as an automatic blanket permission for every machine on a mining site.
Non-Transport Vehicles Inside Notified Ports
Non-transport vehicles working within ports notified by the Ministry of Ports, Shipping and Waterways are also covered by the new condition.
Businesses operating port equipment should separately verify:
Indian Railways Locomotives
Locomotives of Indian Railways are expressly included within the permitted categories.
The concerned railway administration also appears in the vehicle-vetting provision, which means railway-linked projects need coordination with the relevant railway authority.
Ships and Boats on Inland or Seaborne Waterways
The amendment also covers ships and boats operating on approved inland or seaborne waterways.
Depending on the activity, approval may involve:
The relevant authority will depend on where the vessel operates and which authority has jurisdiction.
Engines Under Test
Engines under test at laboratories authorised by the Central Government are also addressed under Condition 22.
This provision should not be stretched to include any private workshop or testing facility. The exact status of the laboratory needs to be checked.
Possibly, but not automatically.
The Chief Controller may allow refueling of onboard CNG/CBG cylinders fitted to:
The significance of the wording is that the consent is based on special circumstances.
The authority may ask for:
For a large construction, mining, or industrial project, this provision can be useful. Still, the correct approach is to seek and obtain the required permission rather than treating physical difficulty in moving the equipment as sufficient approval.
The place where the MRU itself is filled is controlled.
An MRU can be filled or charged only within the designated area of:
The MRU must be shown in the approved layout. It must also be linked with the relevant mother station or licensed premises, and the necessary amendment to the premises licence must be obtained.
This creates a direct regulatory link between the mobile unit and the licensed facility from which it is charged.
Filling the MRU and dispensing from the MRU are not the same regulatory activity.
The amendment states that CNG/CBG MRUs are to dispense into approved onboard fuel cylinders at premises licensed in Form G, subject to the conditions in the rule.
For businesses, this means the compliance chain should be reviewed in three parts:
Looking at only one stage can leave a major gap in the project.
| Point | Filling/Charging the MRU | Dispensing From the MRU |
| Main location | CNG mother station or applicable Form E & F licensed filling premises | Applicable Form G licensed premises |
| Approved layout | Relevant | Relevant to licensed premises/site arrangement |
| Licence connection | MRU attached to applicable licensed premises | Dispensing subject to Form G conditions |
| Main purpose | Charge the MRU storage cascade | Deliver CNG/CBG into approved onboard cylinders |
| Main risk | Filling/storage and pressure management | Site, public access, vehicle and dispensing safety |
Treating these two operations separately during compliance planning will make licence and site review much easier.
Condition 22 refers to more than one approval or permission. The exact combination will depend on the proposed activity.
MRU Assembly Approval
The complete MRU assembly needs the approval referred to in the Rules.
Businesses should make sure that the actual installed system matches the approved configuration.
Changes in components, layout, or operating arrangement should not be assumed to remain covered without checking.
Valid Filling Permission
The amendment states that filling of applicable onboard cylinders must be carried out under valid filling permission.
Form E & F Position
Form E & F is particularly relevant to:
Form G Position
Condition 22 itself has been inserted into Form G. Dispensing activity therefore needs to be examined against the applicable Form G licence conditions.
Approved Layout
The MRU arrangement must be properly reflected in the approved layout where required.
Licence Amendment
The Gazette specifically refers to the necessary amendment in the licence of the premises to which the MRU is attached.
This is an area where PESO compliance services or Gas Cylinder Rules compliance support can be useful, particularly when an existing licensed facility is adding an MRU rather than developing a completely new site.
Site selection is one of the most practical compliance issues in the amendment.
During dispensing, the minimum prescribed distance around the MRU must be maintained.
| Total Water Capacity of Gas Storage Cascade | Minimum Distance From Buildings and Boundaries |
| Up to 4,500 litres | 4.0 metres |
| More than 4,500 litres | 5.0 metres |
These distances are expressly stated in the Gazette.
However, operators should not treat 4 metres or 5 metres as an automatic clearance for every site.
The Chief Controller may specify greater distances from:
A site that appears suitable on a basic drawing may therefore still require changes after a proper safety assessment.
The rules create another important threshold.
A CNG/CBG MRU with total water capacity above 10,000 litres cannot be used unless the Chief Controller specifically permits it with additional safeguards.
For project planning, capacity should therefore be checked at the design stage rather than after the MRU has been procured.
A higher-capacity unit may need a different regulatory approach from a smaller MRU.
Every MRU must have a fail-safe Emergency Shutdown system, usually referred to as ESD.
The system needs to be capable of shutting down the operation quickly if something goes wrong.
Under the amendment, it must:
The rule therefore deals with both installation and continued functionality.
Having an ESD switch on the equipment is not enough if it is inaccessible, untested, or not connected to the correct parts of the system.
The amendment also specifies technical requirements for cylinders used in the storage cascade.
| Technical Area | Requirement |
| Design | IS 7285, ISO 9809, ISO 11119 or another code acceptable to Chief Controller |
| Maximum allowable working pressure | Not above 250 bar gauge unless specifically approved otherwise |
| Periodic testing | Required |
| Inspection | Required |
| Certification | Required |
| Valves | Approved type |
| Pressure Relief Devices | Approved type |
| Fittings | Approved type |
These conditions are expressly set out in the amendment.
The wording allows different recognised cylinder design codes. Businesses should therefore check which standard applies to the actual cylinders being used instead of assuming all listed standards need to apply at the same time.
Hoses and couplings receive separate attention because these are the parts through which gas is actually transferred from the MRU.
The rules require them to be suitable for CNG/CBG service.
They must also have:
For maintenance teams, these are not one-time installation checks.
Testing history, condition of hoses and replacement or repair records can form part of the site's broader compliance trail.
The area around an operating MRU cannot remain open to unrestricted movement.
Physical measures must be used to prevent unauthorised people from entering the dispensing area.
The amendment gives examples such as:
Warning signs must also be clearly displayed in:
Activities unrelated to MRU operations are not allowed inside the dispensing area.
For a busy mine, port or industrial location, this may require changes to vehicle movement and pedestrian access around the refueling point.
The amendment specifically prohibits:
Refueling cannot be left to an untrained operator.
At least one authorised and trained responsible person from the CGD entity or the Form E & F licensee, as applicable, must be present and directly supervise the operation.
The responsible person should understand:
Training records must also be maintained and produced when demanded.
This distinction is useful: the rule is not satisfied merely because someone experienced happens to be present. The person's authorisation, training and records also matter.
The filling operation of the MRU itself must be carried out under the direct supervision of a responsible person of the CGD company or Form E & F licensee who has been properly trained in the safe handling and dispensing of CNG/CBG.
Operators should therefore maintain clear responsibility for both stages:
Stage 1: Filling the MRU
Responsible, trained supervision is required while the MRU is being charged.
Stage 2: Refueling Vehicles or Equipment
Responsible, trained supervision is also required during dispensing at the operating site.
A proposed vehicle cannot simply be added to the MRU operation because it has a compatible CNG or CBG cylinder.
The vehicle list must be vetted by the competent authority.
Depending on the activity, this may include:
The approved list must be maintained at the site.
More importantly, it has to be updated before a new vehicle or equipment unit is refueled.
That makes vehicle-list control a live operational requirement, not a one-time approval exercise.
| Authority/Entity | Main Role Under the Amendment |
| Central Government | Issued final amendment |
| Chief Controller | MRU assembly approval, special permissions and additional safeguards |
| CGD company | CNG MRU ownership and operational responsibility |
| Form E & F licensee | CBG MRU ownership and relevant operations |
| DGMS | Applicable vehicle vetting in mine-related cases |
| Conservator of Ports | Applicable port-related vetting |
| Railway Administration | Relevant railway vehicle/equipment vetting |
| Inland Waterways Authority of India | Relevant inland-waterway approval/vetting |
| Maritime/Port Authority | Applicable vessel or port oversight |
| District Magistrate | Receives emergency plan where specified |
| Local Fire Service | Emergency-plan coordination |
| Police Authority | Emergency-plan coordination |
Not every authority in this table will apply to every MRU project. The operating sector and location will determine which authorities are relevant.
Fueling must stop during an MRU exchange.
The rules require:
This should be treated as a separate operating procedure rather than handled informally by the site team.
Before fuel starts flowing, the equipment must first be checked.
The amendment requires visual checking of:
Dispensing must not start unless these are found to be leak-free.
A simple operational checklist can help ensure that this inspection is not skipped during busy shifts.
The MRU dispensing area should be located and maintained in a manner that allows emergency vehicles to enter and operate without obstruction.
The amendment specifically refers to:
This means site drawings should consider emergency movement, not only MRU parking space and dispensing clearance.
The amendment calls for a site-specific emergency plan for each site.
That plan has to be:
Copies may have to be submitted, as specified, to:
A generic corporate emergency manual may therefore not be enough by itself. The plan needs to reflect the actual MRU site.
This is one of the most important restrictions in the amendment.
An MRU cannot be used for public retail dispensing on:
Does This Mean a Mobile CNG Pump Can Operate Anywhere?
No.
The amendment does not create an unrestricted “fuel anywhere” model.
The MRU is mobile, but its use remains tied to:
For businesses studying mobile CNG or CBG delivery as a new model, this distinction should be checked before any commercial commitment is made.
The amendment contains a fairly detailed record-keeping requirement.
The CGD entity or Form E & F licensee must maintain records relating to:
| Record Category | What Should Be Captured |
| MRU filling | Filling activity |
| Dispensing | Fuel-dispensing activity |
| Pressure | Pressure readings |
| Vehicles/equipment | Details of units refueled |
| Operators | Details of operating personnel |
| Leakage | Leak checks |
| ESD | ESD checks |
| Hoses | Hose testing |
| Maintenance | Maintenance activity |
| Defects | Identified defects |
| Repairs | Repairs undertaken |
| Incidents | Operational incidents |
These records must be produced before the inspecting authority when demanded.
For an operator, this means compliance is not limited to obtaining the initial approval. Records need to show what happened after the MRU became operational.
The MRU remains regulated while it is moving from one location to another.
During movement, the unit has to comply with:
Transport compliance should therefore be checked separately from site dispensing requirements.
Before starting operations, a business can use the following as an internal review list.
| Compliance Check | What Needs to Be Verified |
| MRU type | CNG or CBG |
| Ownership eligibility | Correct CGD/Form E & F route |
| Geographical authorisation | Verified for applicable CNG MRU |
| Assembly approval | Matches actual MRU configuration |
| Filling permission | Valid |
| Approved layout | MRU properly reflected |
| Licence amendment | Obtained where required |
| Filling location | Correct licensed premises |
| Dispensing location | Approved Form G premises/site |
| Vehicle category | Covered under Condition 22 |
| Vehicle vetting | Completed by relevant authority |
| Safety distance | 4 m/5 m or higher where specified |
| Capacity | 10,000-litre threshold checked |
| Cylinder standard | Verified |
| Working pressure | Verified |
| ESD | Installed and tested |
| Hoses/couplings | Correct specification and testing |
| Earthing/bonding | Available |
| Trained supervisor | Appointed |
| Training records | Maintained |
| Warning signs | English, Hindi and local language |
| Access restriction | Physical barriers installed |
| Leak check | Completed before dispensing |
| Emergency access | Maintained |
| Emergency plan | Site-specific plan prepared |
| Mock drill | Conducted periodically |
| Operational records | Maintained |
| Transport compliance | Checked before movement |
This table should be used as an internal review tool, not as a substitute for the applicable licence conditions or approval issued for a particular site.
CGD companies are directly relevant because the rules connect CNG MRU ownership with a CGD company authorised for the geographical area concerned.
A CGD company considering an MRU should review:
The amendment makes MRU operation a structured compliance activity rather than simply an extension of normal CNG distribution.
CBG businesses should first look at the ownership condition.
A Form E & F licensee must own the MRU under the framework set out in Condition 22.
From there, the operator needs to review:
This becomes particularly important where CBG is proposed for industrial or heavy-equipment use outside a conventional retail-fueling setting.
For mines and other businesses using heavy equipment, the amendment may make MRU-based refueling more practical in situations where large machinery is difficult to move.
But the new route is controlled.
A mining company should not begin by asking only, “Can an MRU reach the machine?”
The more useful questions are:
For heavy equipment outside the specifically listed categories, the exceptional-permission route may become important.
The biggest value of the amendment is regulatory clarity.
Businesses now have a more specific framework for deciding when and how mobile CNG/CBG dispensing may take place.
Potential tangible advantages are as follows:
Such advantages should not be taken as guaranteed money savings. The very amendment doesn't guarantee any money savings, any cheaper fuel price, or any faster approval process.
The rules also add work at the planning and operating stages.
Site Availability
A proposed location may not have enough room to maintain the required safety distance and emergency access.
Licence Changes
Existing licensed premises may need amendment before the MRU can be properly linked to the site.
Vehicle Vetting
Adding a new machine or vehicle may require the approved list to be updated before it can be refueled.
Technical Documentation
Specifications for equipment, pressure limits, ESD systems, hose requirements, and cylinder requirements have to coincide with the actual installation.
Training
Persons responsible should be adequately trained, and records should be kept.
Emergency Planning
Each site requires its own emergency arrangement rather than relying only on a general corporate plan.
Daily Records
The operating team has to maintain enough information to demonstrate checks, testing, repairs, and incidents when inspected.
Some issues deserve attention before an MRU starts operating.
Treating the MRU as an Unrestricted Mobile Fuel Station
The Gazette does not support that interpretation.
Starting at an Unapproved Site
A mobile unit still requires an approved operating location.
Refueling a Vehicle Not on the Approved List
The vehicle list should be updated before the new vehicle or equipment is refueled.
Mixing Up Filling and Dispensing Permissions
The location used to fill the MRU and the location where it dispenses are governed differently.
Ignoring the 10,000-Litre Threshold
A higher-capacity MRU requires the specific permission referred to in the rules.
Keeping Incomplete Training Records
The competence of the responsible person needs to be backed by records.
Skipping Pre-Dispensing Leak Checks
The rule requires the relevant equipment to be checked and found leak-free before dispensing starts.
Weak Emergency Planning
An emergency plan should match the actual site and be communicated to operators.
A practical project review can follow this sequence.
Step 1: Define the Activity Clearly
Record:
Without these basics, it is difficult to identify the correct regulatory route.
Step 2: Check Ownership Eligibility
For CNG, review CGD authorisation for the geographical area.
For CBG, review the Form E & F licence position.
Step 3: Review Existing Licences
Check:
Step 4: Review MRU Technical Details
Verify:
Step 5: Review the Operating Site
Check:
Step 6: Check Vehicle Eligibility
Determine the type of equipment/vehicle and the body that is going to review it.
Step 7: Develop the Operation’s Procedure
This includes procedure for:
Step 8: Develop the Emergency Plan
Develop a site-specific emergency plan and not use a generic one.
Step 9: Set Up Records Before Operations Begin
Develop data fields for:
This order constitutes a sensible method of compliance rather than an ordered prescription by the government.
An MRU project can involve several linked compliance questions. The business may already have a gas-related licence but still need to determine whether the proposed mobile unit, site, equipment and operating model fit within the amended Gas Cylinder Rules.
Corpseed can support businesses looking for PESO compliance services and Gas Cylinder Rules compliance assistance in areas such as:
1. Applicability Review
Corpseed can review the proposed activity to understand:
2. Existing Licence Review
Existing licences and permissions can be checked against the proposed MRU arrangement to identify possible gaps before operations begin.
3. MRU Compliance Gap Assessment
The proposed setup can be reviewed against areas such as:
4. Regulatory Documentation Support
Corpseed can assist in organising the information and supporting documents needed for applicable regulatory submissions or licence amendments.
5. Technical Compliance Coordination
Where the project requires technical drawings, equipment details, safety documentation or supporting records, Corpseed can help coordinate the compliance documentation required for the relevant approval process.
6. Site Compliance Review
A proposed operating site can be reviewed for regulatory points including:
7. Compliance Record Framework
Operators can be supported in setting up practical formats for:
8. Inspection Readiness
Before inspection or operational commencement, the business can review whether licence documents, technical approvals and operating records are properly organised.
Businesses planning an MRU for a mine, port, railway operation, waterway application or heavy-equipment site should avoid using a generic licensing checklist. The regulatory path should be mapped against the actual gas, owner, site and equipment involved.
For businesses seeking PESO compliance services, Corpseed can assist with regulatory assessment, licence and approval review, documentation support and ongoing Gas Cylinder Rules compliance based on the actual MRU project.
The Rules on CNG CBG Mobile Refueling Units 2026 provide a cleaner working environment for mobile refueling activities, but they do not facilitate unfettered mobile fuel retailing. A few points deserve particular attention:
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