India

India Among Cheapest Globally for LPG, Despite ₹29 Hike

Cooking gas prices in India remain among the lowest globally, even as LPG cylinder prices were raised by ₹29 amid soaring international costs and...

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The price of an LPG cylinder is being raised by only ₹29 per cylinder, despite the sharp rise in international LPG prices and the losses being borne by the PSU oil companies.

A beneficiary of the Pradhan Mantri Ujjwala Yojana pays an effective ₹642 for a 14.2 kg cylinder, while a general consumer in Delhi pays ₹942, against a supply cost that has now risen to around ₹1,600–₹1,700.

As shown in the table on your screen, Indian households continue to buy cooking gas at prices much lower than those in neighbouring countries and far below the prices paid in advanced economies such as the United States, Australia and Canada.

About 54 per cent of India’s LPG consumption was routed through the Strait of Hormuz, leaving cooking gas supplies directly exposed to disruptions. India was among the few countries that kept its energy cargoes moving. There has been no shortage of any petroleum product, and bottling and distribution have continued normally across the network.

A range of measures was taken to secure supplies during the disruption. On the supply side, domestic LPG production was increased by more than 60 per cent, from about 32 TMT to about 52 TMT, to offset constrained imports. Sourcing was simultaneously expanded to suppliers across the world, including those that do not route through the Strait, such as the United States, Canada and Algeria. Available LPG was directed to households and priority users such as hospitals and educational institutions.

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