LPG Prices in India Remain Among Lowest Globally Despite Recent Hike: Government
Digital Desk
The government on Sunday stated that cooking gas prices in India continue to be significantly lower than most countries globally, even after a recent revision of ₹29 per 14.2-kg LPG cylinder.
In Delhi, the price of a domestic LPG cylinder has been increased from ₹913 to ₹942. However, beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to pay an effective price of ₹642 per cylinder after a ₹300 subsidy for the first four refills annually.
Officials noted that despite the increase, India’s LPG rates remain comparatively lower than several neighbouring countries, including Pakistan, Bangladesh, Nepal and Sri Lanka.
Global Price Surge Impact
According to government data, international LPG benchmark prices linked to the Saudi Contract Price have risen by around 46% since February. The surge is attributed to supply disruptions in West Asia, particularly around the Strait of Hormuz.
Despite global volatility, India has managed to limit domestic price increases to around 10%, the government said, highlighting its controlled pricing approach in the energy sector.
Subsidy and Consumer Impact
The Pradhan Mantri Ujjwala Yojana continues to play a key role in protecting low-income households from rising fuel costs. Under the scheme, eligible consumers receive a ₹300 subsidy per refill for up to four cylinders annually.
Even with recent revisions, officials stated that domestic LPG remains heavily subsidised compared to international market rates, helping maintain affordability for millions of households across the country.
Oil Companies Under Pressure
State-run oil marketing companies have reportedly been absorbing significant losses on LPG sales. Before the latest revision, these companies were estimated to be losing around ₹703 per cylinder.
The recent price adjustments are seen as part of efforts to reduce under-recoveries while balancing consumer affordability.
Supply Stability During Crisis
The government also highlighted that India successfully maintained uninterrupted energy supply during recent disruptions in West Asia. Despite geopolitical tensions affecting global energy routes, supplies through the Strait of Hormuz remained stable.
Officials said this ensured there was no shortage of LPG or petroleum products in the domestic market, reinforcing India’s energy security strategy
