India’s LPG prices among lowest in world despite global energy crisis – Here’s how

Despite rising oil prices across the world, Indian households continue to enjoy some of the lowest cooking gas prices in the world. Although the government has raised domestic LPG prices by Rs 29 per cylinder, the cost remains significantly lower than gas prices in other countries, including the United States, Australia, and Canada.

“The Indian cylinder is cheaper than in any neighbouring country and far below the price in advanced economies such as the United States, Australia and Canada,” the Ministry of Petroleum and Natural Gas said in a statement.

The price of a standard 14.2 kg domestic LPG cylinder in Delhi has risen from Rs 913 to Rs 942. However, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive significant relief. Under the scheme, eligible households receive a direct benefit transfer of Rs 300 per cylinder on the first four refills every year, effectively reducing the price to Rs 642 per cylinder.

The government said that the actual cost of supplying a 14.2 kg LPG cylinder has now exceeded Rs 1,600 due to soaring international energy prices. This means even non-PMUY consumers are paying nearly Rs 700 less than the market-linked cost, while PMUY beneficiaries receive an even larger subsidy.

The ministry also said that there is no shortage of any petroleum product. “India was among the few to keep its energy cargoes moving through the Strait of Hormuz; no shortage of any petroleum product,” it said.

Global energy markets have been under pressure following disruptions in the Strait of Hormuz, a critical maritime route through which nearly one-fifth of the world’s crude oil and natural gas supplies pass. The conflict has pushed up international fuel prices, increasing the burden on India’s oil marketing companies (OMCs).

To cushion consumers from the impact of rising global prices, the government continues to regulate the effective retail price of LPG. Officials estimate that public sector oil companies and the government together are absorbing nearly Rs 60,000 crore in costs to keep domestic LPG prices affordable. Of this amount, the government has approved Rs 30,000 crore in compensation to support the OMCs.

Despite the latest revision, LPG prices in India remain considerably lower than those in several neighbouring countries, including Pakistan, Nepal, Bangladesh and Sri Lanka. They are also significantly cheaper than prices in developed nations such as the United States, Australia and Canada.