On Sunday, the Center justified the recent increase in local liquefied petroleum gas prices, saying that government oil marketing companies continue to incur losses of about $700 on each cylinder is 14.2 kg despite the height.
The government also said that cooking gas remains cheaper in India than in neighboring countries like Pakistan and Bangladesh, even as consumers face a second 100% price hike. $29 per 14.2kg drum since supplies were disrupted by conflict in West Asia earlier this year.
Public sector oil marketing companies late Saturday night raised domestic LPG prices for the second time since the outbreak of conflict in West Asia. This comes after prices rose earlier $60 per 14.2 kg cylinder on March 7, bringing the total increase in cooking gas prices so far to $89.
On March 7, IOCs raised the price of a 14.2 kg domestic LPG cylinder which is supplied to public households from $853 to $913 onwards $942 on June 7.
The latest increase has made cooking gas more expensive than at any time since August 30, 2023, when a cylinder was priced at $903. However, the government provides a subsidy of $300 per 14.2 kg drum for up to nine packages annually for nearly 100 million poor families under the Pradhan Mantri Ujjwala Yojana (PMUY).
A Petroleum Ministry statement on Sunday said the government continues to adjust the actual price for domestic LPG consumers. “The PMUY beneficiary will additionally receive a direct transfer of benefit $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; She added that this support has not changed.
However, it is not clear whether the government has officially reduced the number of subsidized cylinders for poor families from nine to four annually in the current fiscal year. We await clarification from the official spokesman for the Ministry of Petroleum.
On August 8, 2025, the Federal Cabinet approved a targeted support of $300 per 14.2 kg cylinder for up to nine packages per year (prorated for 5 kg cylinders) for PMUY beneficiaries during FY 2025-2026.
The ministry statement also said that Indian households continue to purchase cooking gas at prices much lower than those paid by households in neighboring countries, and much lower than prices in advanced economies such as the United States, Australia and Canada. According to the statement, the corresponding equivalent price for LPG is $1,046 per 14.2 kg refill in Pakistan, $1,225 in Bangladesh, $1,755 in the United States, $1765 in Australia and $2411 in Canada.
“The beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) 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,” she said. “Even a non-PMUY family will pay around that.” $700 less than the market associated roller cost. She added that retail prices vary slightly between locations due to distribution costs.
