India's LPG Prices Rise Amid Global Supply Challenges
India’s cooking gas still cheaper, says Centre; explains why LPG prices hiked again

Image: Hindustan Times
India's Ministry of Petroleum and Natural Gas announced a ₹29 increase in domestic LPG prices, now costing ₹942 per cylinder. Despite this hike, Indian households still pay significantly less than consumers in neighboring countries. The increase is attributed to rising international costs linked to the West Asia crisis.
- 01The effective price for beneficiaries of the Pradhan Mantri Ujjwala Yojana is ₹642 per cylinder after a ₹300 subsidy.
- 02India imports around 60% of its LPG, with prices linked to the Saudi Contract Price, which has surged due to geopolitical tensions.
- 03The cost of supplying a 14.2 kg LPG cylinder has exceeded ₹1,600, leading to a government subsidy of approximately ₹700 per cylinder.
- 04Commercial LPG prices are updated monthly based on international benchmarks, with a 19 kg cylinder currently priced at ₹3,113.50 in Delhi.
- 05The government has increased domestic LPG production by over 60% to mitigate the impact of constrained imports.
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The Indian government has raised the price of domestic LPG cylinders by ₹29, bringing the cost to ₹942 in Delhi. This increase is attributed to a sharp rise in international LPG prices due to the ongoing crisis in West Asia. The Ministry of Petroleum and Natural Gas emphasized that Indian households still pay significantly less for cooking gas compared to consumers in neighboring countries. Beneficiaries of the Pradhan Mantri Ujjwala Yojana effectively pay ₹642 per cylinder after receiving a ₹300 subsidy on their first four refills annually. The actual cost of supplying a cylinder has surpassed ₹1,600, with the government absorbing a subsidy of about ₹700 per cylinder. The ministry also noted that India imports approximately 60% of its LPG, with prices linked to the Saudi Contract Price, which has risen dramatically in recent months. In contrast, commercial LPG prices are adjusted monthly and currently stand at ₹3,113.50 for a 19 kg cylinder in Delhi. To offset supply constraints, domestic LPG production has increased significantly, and efforts are being made to secure supplies from various international sources.
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The increase in LPG prices could lead to higher household expenses for cooking fuel, impacting middle-class families and contributing to inflation.
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