The Petroleum Ministry highlighted that Indian households enjoy the advantage of purchasing cooking gas at lower prices than households in neighboring countries and significantly below rates in advanced economies like the United States, Australia, and Canada. A consumer under the Pradhan Mantri Ujjwala Yojana (PMUY) pays Rs 642 for a 14.2 kg cylinder, while the general consumer in Delhi pays Rs 942, despite the cost of supply exceeding Rs 1,600.
The government continues to regulate the effective price of domestic LPG for consumers. Regardless of location, households can buy cylinders at Rs 942 each. Additionally, PMUY beneficiaries receive a direct benefit transfer of Rs 300 per cylinder on the first four refills annually, amounting to an effective payment of Rs 642 for those refills. The ministry affirmed that this support remains consistent, with non-PMUY households also benefiting from a price lower than the market-linked cost of the cylinder.
Commercial cylinders used by hotels and businesses undergo monthly price revisions based on international benchmarks, while domestic cooking cylinders do not. Previously reliant on importing 60% of its LPG needs, India’s landed cost for imports aligns with the Saudi Contract Price (CP) established monthly by Saudi Aramco. This external price, such as the Saudi CP for LPG, has seen an increase, reaching $790 a tonne in June, reflecting a 46% rise from pre-crisis levels in February.
