Indian households continue to pay some of the lowest cooking gas prices globally, even as international LPG prices and supply disruptions have increased costs for domestic fuel distributors, according to the Ministry of Petroleum and Natural Gas.
The Ministry of Petroleum and Natural Gas has stated that domestic LPG prices in India remain among the lowest in the world despite rising international energy costs and geopolitical disruptions affecting global fuel markets.
According to the ministry, the price of a 14.2 kg domestic LPG cylinder in India stands at ₹842, while beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) pay ₹642 after receiving a subsidy of ₹300 per cylinder. Ujjwala households are eligible for the subsidy on up to 12 refills annually, translating into a benefit of ₹3,600 per year. Non-PMUY consumers also receive support through below-cost LPG pricing.
The government noted that LPG prices in India are lower than those in several neighboring countries and significantly below prices prevailing in developed economies such as the United States, Australia and Canada. Despite a decline of nearly 48% in international LPG prices since February 2025, oil marketing companies continue to face an under-recovery of around ₹700 on each domestic cylinder sold.
Data released by the ministry showed that losses incurred by public sector oil marketing companies have narrowed from approximately ₹2,415 crore in February 2025 to about ₹1,247 crore by June 2026. This improvement has been attributed to a combination of lower international prices and government support measures.
The ministry highlighted that India successfully maintained uninterrupted LPG supplies during recent disruptions in the Strait of Hormuz, a critical global energy transit route. While international LPG production declined and shipping routes faced uncertainty, authorities said adequate planning and diversification of import sources helped prevent shortages in the domestic market.
Government support for the sector includes compensation to oil marketing companies for LPG under-recoveries and continued subsidies for eligible consumers. Since the launch of the PMUY scheme, more than 10.33 crore LPG connections have been provided to economically disadvantaged households across the country.
The ministry said these measures reflect the government’s broader objective of ensuring affordable access to clean cooking fuel while promoting energy security and household welfare.
Source: This article is based on a Press Information Bureau (PIB) release issued by the Ministry of Petroleum and Natural Gas
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