Indian Households Continue to Get LPG at Among the Lowest Prices Globally

Indian Households Continue to Get LPG

at Among the Lowest Prices Globally

CNB WORLD TIMES

New Delhi, June 7:Indian households continue to benefit from some of the lowest cooking gas prices in the world despite a sharp rise in international LPG prices, according to the Government of India.

The price of a 14.2 kg domestic LPG cylinder in Delhi currently stands at ₹942, while beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively pay ₹642 after receiving a subsidy of ₹300 per cylinder on the first four refills each year. The subsidy support remains unchanged and provides an annual benefit of ₹1,200 to each eligible household.

The government stated that LPG prices in India remain significantly lower than those in neighbouring countries and advanced economies. A similar cylinder costs around ₹1,046 in Pakistan, ₹1,207 in Nepal, ₹1,225 in Bangladesh, and ₹1,241 in Sri Lanka. Prices are even higher in countries such as the United States, Australia, and Canada.

Despite the recent revision in domestic LPG prices, consumers continue to pay much less than the actual cost of supplying the fuel. The government noted that the cost of supplying a 14.2 kg LPG cylinder has risen to more than ₹1,600 due to a steep increase in global LPG prices. This means that even after the latest price revision, the government and public sector oil marketing companies are absorbing an under-recovery of about ₹700 per cylinder.

International LPG prices have increased sharply following disruptions in West Asia. The Saudi Contract Price (CP), which serves as the benchmark for LPG imports into India, has risen by nearly 46 per cent between February and June 2026. The increase was largely driven by supply concerns linked to disruptions around the Strait of Hormuz, a key route for global energy shipments.

The government highlighted that domestic LPG prices are not directly linked to monthly international fluctuations, unlike commercial LPG cylinders used by hotels and businesses. While commercial LPG prices are revised every month based on market rates, domestic consumers continue to receive protection from sudden price increases.

India also managed to maintain uninterrupted energy supplies during the Strait of Hormuz disruption. The government said Indian-flagged vessels continued transporting crude oil and LPG cargoes, ensuring there was no shortage of cooking gas or any other petroleum product across the country.

To strengthen supply security, domestic LPG production was increased by more than 60 per cent, alternative international suppliers were tapped, and strict monitoring measures were implemented to prevent diversion of subsidised LPG cylinders.

The government further stated that the cumulative under-recovery on domestic LPG reached around ₹60,000 crore in the previous financial year. To support public sector oil marketing companies, the Union Cabinet has approved compensation of ₹30,000 crore. In addition, more than 10.58 crore PMUY beneficiaries continue to receive direct subsidy support on LPG refills.

According to the government, these measures have helped ensure affordable cooking fuel for Indian households while maintaining uninterrupted supplies despite volatility in global energy markets.