Indian LPG Prices Remain Significantly Lower Than Global Rates, Ministry Reports
Indian households pay far less for LPG than global prices: Ministry
Image: Asianet Newsable
The Ministry of Petroleum and Natural Gas reports that Indian households pay significantly less for LPG compared to global prices, with Ujjwala beneficiaries paying an effective ₹642 for a 14.2 kg cylinder. Despite recent price increases due to international market fluctuations, Indian consumers benefit from government subsidies and support.
- 01Ujjwala beneficiaries pay an effective ₹642 for a 14.2 kg LPG cylinder, while general consumers pay ₹942.
- 02LPG prices in India are significantly lower than in neighboring countries, with cylinders costing ₹1,046 in Pakistan and ₹1,755 in the United States.
- 03The government absorbs a substantial under-recovery cost of approximately ₹700 per cylinder due to rising international prices.
- 04India's LPG supply chain remained stable despite disruptions in the Strait of Hormuz, with increased domestic production and alternative sourcing.
- 05The cumulative under-recovery on domestic LPG reached ₹60,000 crore, with the government approving ₹30,000 crore in compensation for public sector marketing companies.
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According to the Ministry of Petroleum and Natural Gas, Indian households are paying much lower prices for liquefied petroleum gas (LPG) compared to global rates. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) pay an effective ₹642 for a 14.2 kg cylinder, while general consumers in Delhi pay ₹942. This is in stark contrast to prices in neighboring countries like Pakistan (₹1,046) and advanced economies such as the United States (₹1,755). The ministry noted that domestic LPG prices are linked to international market rates, which have risen due to the ongoing crisis in West Asia. Despite a recent increase of ₹29 per cylinder, the Indian government continues to subsidize LPG prices, absorbing a significant under-recovery cost of about ₹700 per cylinder. The cumulative under-recovery on domestic LPG reached ₹60,000 crore, prompting the Union Cabinet to approve ₹30,000 crore in compensation for public sector marketing companies. The government has taken measures to ensure a stable LPG supply, including increasing domestic production and sourcing from alternative suppliers.
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The price of LPG directly affects household cooking costs for millions of Indian families, with subsidies helping to keep these costs manageable despite international price fluctuations.
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