The Ministry of Petroleum and Natural Gas has said that Indian households continue to enjoy some of the lowest cooking gas prices in the world, even after a Rs 29 increase in domestic LPG cylinder prices that took effect on Sunday.
The price revision comes amid rising global energy costs triggered by the ongoing crisis in West Asia and disruptions in the Strait of Hormuz, a critical route for global energy supplies. Despite the increase, the government maintains that domestic consumers are still largely shielded from international price volatility.
Cost of supplying cylinder has increased
According to the ministry, a general consumer in Delhi now pays Rs 942 for a 14.2 kg LPG cylinder, while beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively pay Rs 642 after receiving a direct benefit transfer of Rs 300 per cylinder on their first four refills each year.
The ministry highlighted that the actual cost of supplying a cylinder has risen to more than ₹1,600 due to a sharp increase in international LPG prices. The Saudi Contract Price (CP), which serves as a benchmark for India’s LPG imports, has climbed significantly since February following disruptions in the Gulf region.
“What the household does not bear the brunt of is the several hundred rupees a cylinder which the Government is bearing. Through a period of sharp international cost increases, that burden has been absorbed upstream rather than passed to the consumer,” the release said.
Indians pay less than neighbouring countries
The government noted that Indian consumers continue to pay less for LPG than households in neighbouring countries. A comparable cylinder costs approximately Rs 1,046 in Pakistan, Rs 1,207 in Nepal, Rs 1,225 in Bangladesh and Rs 1,241 in Sri Lanka. Prices are even higher in developed economies, reaching around Rs 1,755 in the United States, Rs 1,765 in Australia and Rs 2,411 in Canada.
Officials said India has taken several measures to maintain uninterrupted energy supplies despite challenges arising from the closure of the Strait of Hormuz. More than half of India’s LPG imports traditionally pass through the strategic waterway, making the country particularly vulnerable to disruptions.
Increase in price to compensate for imports
The ministry said domestic LPG production was increased by over 60 per cent to compensate for reduced imports, while alternative sourcing arrangements were established with suppliers in countries including the United States, Canada and Algeria.
The government also tightened monitoring mechanisms to prevent diversion of subsidised domestic cylinders into the commercial market. Measures such as OTP-based delivery verification have reportedly helped improve transparency in the distribution system.
The ministry stressed that the burden of keeping LPG affordable is shared between public sector oil marketing companies and the government. It said cumulative under-recoveries on domestic LPG reached Rs 60,000 crore in the previous financial year, compared with Rs 41,338 crore a year earlier. To address part of this gap, the Union Cabinet has approved compensation of Rs 30,000 crore for the oil marketing companies.
“Almost all Indian consumers have, in this way, received LPG at prices far below international market levels through the last several years. The Government of India has ensured among the lowest cooking gas prices in the world for Indian citizens over several years, despite extreme volatility in international prices,” it said.