LPG Price Hike: LPG cylinder prices have reached ₹1,600 in the international market. However, compared to many other countries, the Indian government continues to provide cooking gas at a significantly lower price.

LPG Price Hike: Crude oil prices are rising due to the ongoing tensions between the US and Iran, an impact being felt globally. Prices of petrol, diesel, and gas are consistently increasing. Specifically in India, the price of domestic LPG cylinders has been hiked for the second time in just three months. Since June 7, the price of a 14.2 kg domestic cylinder in Delhi has risen by ₹29 to reach ₹942.

Domestic gas is cheaper in India

Despite the price surge in the international market, cooking gas in India remains much cheaper than in many other countries. According to the Ministry of Petroleum, the actual cost of a domestic LPG cylinder has now exceeded ₹1,600, yet ordinary consumers in Delhi are getting it for ₹942. Meanwhile, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) receive a subsidy of ₹300 per cylinder, bringing their effective cost down to just ₹642.

Rise in international prices

This means ordinary consumers are paying about ₹700 less than the market price, while Ujjwala Yojana beneficiaries receive even greater relief. LPG import prices in India are linked to the Saudi Contract Price (Saudi CP). This price stood at $543 per tonne in February, rose to $775 in April, and reached approximately $790 per tonne in June—an increase of nearly 46 percent in international prices over four months.

Had the full burden of this increase been passed on to consumers, cylinders would have become significantly more expensive. However, the central government and state-owned oil companies are absorbing a large portion of this additional cost themselves.

LPG is cheaper in India

Compared to other countries, LPG is significantly cheaper in India. Beneficiaries of the Ujjwala Yojana receive a cylinder for ₹642, whereas the price is approximately ₹1,046 in Pakistan, ₹1,207 in Nepal, ₹1,225 in Bangladesh, and ₹1,241 in Sri Lanka. In developed nations like the US and Australia, the price of a cylinder exceeds ₹1,750, while in Canada, it goes above ₹2,400.