LPG Cylinder Prices Surpass ₹1,600 Amid Hormuz Crisis, Government Steps In
LPG cylinder cost crosses Rs 1,600 amid Hormuz crisis; govt absorbs hit

Image: Asianet Newsable
The price of a 14.2 kg domestic LPG cylinder in India has exceeded ₹1,600 due to international market disruptions, with the government absorbing a ₹700 loss per cylinder. Despite this, Indian households enjoy lower prices compared to global rates, thanks to subsidies.
- 01The international price of LPG has surged by approximately 46% since February due to disruptions in the Strait of Hormuz.
- 02Indian consumers in Delhi currently pay ₹942 per cylinder, significantly below the market-linked cost.
- 03The cumulative under-recovery on domestic LPG has reached ₹60,000 crore, prompting the Union Cabinet to approve ₹30,000 crore in compensation to marketing companies.
- 04The effective price for PMUY Ujjwala beneficiaries is ₹642, around 60% lower than international rates.
- 05India's LPG prices remain competitive compared to neighboring countries, with Pakistan charging ₹1,046 and the US ₹1,755.
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The cost of a 14.2 kg domestic LPG cylinder in India has crossed ₹1,600, driven by a 46% increase in international LPG prices due to disruptions in the Strait of Hormuz. The Indian government and public sector marketing companies are absorbing a loss of about ₹700 per cylinder. Despite the price hike, Indian households benefit from substantial subsidies, with the effective price for Ujjwala beneficiaries at ₹642, significantly lower than the international average. The cumulative under-recovery on domestic LPG has reached ₹60,000 crore, leading the government to approve ₹30,000 crore in compensation for marketing companies. Indian prices remain competitive compared to neighboring countries, with Delhi consumers paying ₹942 per cylinder, which is about 45% less than the international price. The Ministry of Petroleum and Natural Gas has urged consumers to adopt energy-efficient cooking practices to conserve resources.
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The rising LPG prices may affect household budgets, particularly for low-income families relying on subsidies.
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