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Indian households proceed to wage among the lowest prices for cooking state globally contempt a crisp emergence successful planetary LPG prices triggered by disruptions successful West Asia, the authorities said connected Sunday (June 7, 2026), a time aft increasing home LPG prices by ₹29 per cylinder.
The terms of a 14.2-kg home LPG cylinder successful Delhi was raised to ₹942 from ₹913, portion beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) volition proceed to wage an effectual ₹642 per cylinder aft receiving a subsidy of ₹300 per refill connected the archetypal 4 refills annually, down from 9 refills announced past year.
The summation follows a ₹60-per-cylinder hike connected March 7, taking the cumulative hike to ₹89 per 14.2-kg cylinder. State-run lipid selling companies were estimated to beryllium losing astir ₹703 connected each LPG cylinder sold earlier the latest revision.
In a statement, the authorities said the outgo of supplying a home LPG cylinder has risen to much than ₹1,600 pursuing a surge successful planetary prices that followed the outbreak of warfare successful West Asia astatine the extremity February.
India's LPG import costs are linked to the Saudi Contract Price (CP), the planetary benchmark for the fuel. The benchmark has risen astir 46% since February aft disruptions linked to the Strait of Hormuz tightened supplies from the Gulf region, according to the statement.
Despite the increase, home LPG prices stay beneath those prevailing successful neighbouring countries specified arsenic Pakistan, Nepal, Bangladesh, and Sri Lanka, and importantly little than prices successful precocious economies, including the United States, Australia, and Canada, the authorities said.
The authorities besides said India was among the fewer countries capable to support uninterrupted vigor shipments done the Strait of Hormuz during the crisis, ensuring determination was nary shortage of LPG oregon different petroleum products successful the country. Domestic LPG accumulation was accrued and supplies diversified done alternate sourcing arrangements to safeguard availability, it added.
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According to the statement, cumulative under-recoveries connected home LPG income roseate to astir ₹60,000 crore by the extremity of the erstwhile fiscal year, compared with ₹41,338 crore a twelvemonth earlier. The Union Cabinet has approved ₹30,000 crore successful compensation to state-run lipid selling companies to partially offset these losses.
The authorities said the latest revision balances the request to shield households from volatile planetary vigor prices portion ensuring continued availability of cooking substance crossed the country.
"The prices of petroleum products successful India are linked to the corresponding prices successful the planetary market. The government, however, continues to modulate the effectual terms to the user for home LPG. Any household tin bargain arsenic galore cylinders arsenic it needs astatine ₹942," the connection said.
"A PMUY beneficiary volition additionally person the nonstop payment transportation of ₹300 a cylinder connected the archetypal 4 refills each twelvemonth — broadly the mean yearly depletion of a emblematic Ujjwala household, astir 4 refills a twelvemonth — and truthful pays an effectual ₹642 connected those refills; this enactment is unchanged."
Even a non-PMUY household would wage astir ₹700 beneath the market-linked outgo of the cylinder.
Retail prices disagree marginally crossed locations connected relationship of organisation costs.
"What the household does not carnivore the brunt of is the respective 100 rupees a cylinder which the authorities is bearing. Through a play of crisp planetary outgo increases, that load has been absorbed upstream alternatively than passed to the consumer," it said.
While the commercialized cylinder utilized by hotels and businesses is revised automatically each period due to the fact that its terms is simply a nonstop pass-through of the planetary benchmark, the home cooking cylinder is not.
"India utilized to import 60% of its LPG requirements, and the landed outgo of that import tracks the Saudi Contract Price (CP) that Saudi Aramco sets astatine the commencement of each month. This is an outer terms implicit which the Indian user has nary control," the authorities said.
Through the West Asia disruption the benchmark moved sharply higher. "Expressed arsenic the 50:50 propane-butane blend utilized for India's LPG, the Saudi CP for LPG stood astatine astir $543 a tonne successful February, earlier the disruption. Following the closure of the Strait of Hormuz successful precocious February, the April declaration terms — the archetypal acceptable aft the disruption tightened Mideast Gulf exports — roseate to $775 a tonne, with propane astatine $750 and butane astatine $800, and has since edged up further to $790 a tonne successful June."
The blended LPG benchmark has frankincense risen by astir 46% since the pre-crisis February level, the connection said.
"The standard of this is disposable successful the afloat market-priced commercialized cylinder: the 19 kg cylinder utilized by hotels and restaurants sells successful Delhi astatine ₹3,113.50, astir ₹164 a kg, aft 5 increases during the West Asia crisis. The home household, by contrast, pays astir ₹66 a kg aft the revision," it said.
"Commercial state carries a higher complaint of taxation and larger margins, truthful it sits supra the household's cost-reflective level; adjacent so, the import-linked outgo of a home cylinder works retired to implicit ₹1,600."
The authorities said it maintained uninterrupted supplies of LPG and different petroleum products contempt disruptions successful the Strait of Hormuz, a cardinal shipping way done which 54% of India's LPG imports are transported. Domestic LPG accumulation was accrued by much than 60% — from astir 32,000 tonnes a time to astir 52,000 tonnes — imports were diversified to suppliers, including the United States, Canada and Algeria, and ensured continued question of LPG cargoes to Indian ports, preventing shortages successful the home market.
To conserve supplies, consumers were encouraged to power to piped earthy state wherever available, portion enforcement against diversion of subsidised LPG cylinders to commercialized usage was stepped up done wider usage of OTP-based transportation verification. The authorities said these measures helped prolong household supplies during a play of heightened geopolitical tensions and supply-chain disruptions.
"The under-recovery is abstracted from the subsidy: the spread betwixt the planetary outgo and the regulated retail terms — an estimated magnitude rising towards ₹60,000 crore connected home LPG successful the past afloat year, up from ₹41,338 crore the twelvemonth earlier — is borne by the nationalist assemblage selling companies and the exchequer, against which the Union Cabinet has approved ₹30,000 crore successful compensation; implicit and supra this, Ujjwala consumers person an further ₹300 per cylinder credited straight to their slope account, reaching much than 10.58 crore connections," the connection added.
