07/06/2026
India Ensures Affordable Cooking Gas Despite Sharp Increase in International LPG Prices
New Delhi, June 7: Despite a sharp increase in international liquefied petroleum gas (LPG) prices, the Government of India has asserted that domestic consumers continue to receive cooking gas at some of the lowest rates globally, owing to sustained government support and subsidy measures.
In a statement issued on Saturday, the Ministry of Petroleum and Natural Gas said that LPG prices in India remain lower than those in neighbouring countries and significantly below prevailing rates in developed economies such as the United States, Australia, and Canada.
According to the ministry, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) currently pay ₹642 for a 14.2-kg LPG cylinder after receiving a direct benefit transfer (DBT) subsidy of ₹300 on the first four refills each year. In comparison, the retail price for non-subsidised consumers in Delhi stands at ₹942 per cylinder.
The ministry attributed the recent rise in LPG costs to a substantial increase in international benchmark prices. It noted that the Saudi Contract Price (CP), a key global reference for LPG pricing, surged by approximately 46 per cent between February and June due to disruptions in the Strait of Hormuz, which tightened supplies across Gulf markets. As a result, the estimated cost of supplying a 14.2-kg LPG cylinder exceeded ₹1,600 during the period.
Despite these challenges, the government said it absorbed a significant portion of the increased cost burden to shield consumers from fluctuations in global energy markets and maintain affordability for households.
Highlighting comparative pricing, the ministry stated that the effective price paid by PMUY beneficiaries remains lower than cooking gas prices in neighbouring countries, including Pakistan, Nepal, Bangladesh, and Sri Lanka.
The government also underscored its efforts to ensure energy security amid the West Asia crisis. It stated that India was among the few nations able to maintain uninterrupted movement of energy cargoes through the Strait of Hormuz despite severe disruptions to maritime traffic.
Officials confirmed that there has been no shortage of petroleum products across the country, with LPG bottling and distribution operations continuing without interruption. To strengthen domestic supply, India increased LPG production by more than 60 per cent during the disruption period and diversified imports by sourcing additional supplies from countries such as the United States, Canada, and Algeria.
The ministry maintained that these measures have helped ensure uninterrupted availability of cooking gas while protecting consumers from the full impact of rising international energy prices.
