On Sunday, the government justified raising the prices of liquefied petroleum gas (liquefied petroleum gas or cooking gas) by 100%. $29 per 14.2 kg drum $942 on the grounds that state-run oil companies continue to lose $700 on each refill and that fuel is still cheaper in India than in Pakistan and Bangladesh.
Public sector oil marketing companies (OMCs) late on Saturday raised domestic LPG prices across the country for the second time since the outbreak of war in West Asia on February 28, leading to major disruptions on the global supply side. Including an increase $60 per cylinder of 14.2 kg on March 7, bringing the total rise in cooking gas prices so far. $89.
OMC companies on March 7 raised the price of 14.2 kg domestic LPG cylinders supplied to public households from… $853 to $913, and on June 7 to $942. The recent rise takes cooking gas prices to their highest level since August 30, 2023. However, the government is subsidizing cooking gas with $300 per 14.2 kg drum for up to nine packages annually for nearly 100 million poor families under the Prime Minister Ujjwala Yojana (PMUY).
Noting that the government continues to adjust the actual price paid by consumers, the Ministry of Petroleum said: “The PMUY beneficiary will additionally receive a direct benefit transfer from $300 cylinders in the first four packs every year – broadly speaking the average annual consumption of a typical Ujwala household, about four packs per year – thus effectively paying $642 on those packages; This support has not changed.”
However, it is unclear whether the government has officially reduced the number of subsidized cylinders available to poor families from nine to four per year in the current fiscal year. It is still awaiting clarification from Oil Ministry spokesmen. The Federal Cabinet on August 8, 2025 approved the subsidy $300 per 14.2 kg drum for up to nine refills per year (prorated for a 5 kg drum) for PMUY beneficiaries during 2025-2026.
The ministry’s statement said that Indian families continue to purchase cooking gas at prices lower than those prevailing in neighboring countries and developed economies. According to the Ministry, the price of a 14.2 kg LPG cylinder is: $1,046 in Pakistan, $1,225 in Bangladesh, $1,755 in the United States, $1765 in Australia and $2411 in Canada.
“The PMUY beneficiary pays an effective amount $642 for 14.2 kg drum and general consumer in Delhi $942, compared to the cost of supply, which has now risen to more than that $1,600. Even a non-PMUY family will pay around that,” the ministry said $700 less than the market associated roller cost. She added that retail prices vary slightly between locations due to distribution costs.
