New Delhi, June 7: The Ministry of Petroleum announced on Sunday that the prices of cooking gas used in Indian households remain significantly lower compared to neighboring countries and developed nations such as the United States, Australia, and Canada.
According to the ministry’s statement, beneficiaries of the Pradhan Mantri Ujjwala Yojana can obtain a 14.2 kg cylinder for an effective price of ₹642, while general consumers in Delhi purchase it for ₹942. The actual supply cost has now exceeded ₹1,600.
The government emphasized that domestic LPG prices are kept controlled for consumers. Families can buy as many cylinders as they need at the rate of ₹942 each. Ujjwala scheme beneficiaries receive a direct subsidy of ₹300 per cylinder for the first four refills each year, bringing their effective price down to approximately ₹642 per cylinder.
The ministry confirmed that this assistance continues as before. Non-Ujjwala families also receive cylinders at prices about ₹700 lower than the market-based actual cost, although slight price variations may occur due to distribution costs in different regions.
The price of commercial cylinders, used in hotels and businesses, is adjusted monthly based on international market rates, while domestic cylinder prices are not changed directly every month.
India previously imported about 60% of its LPG needs, with the import price based on the Saudi Contract Price set by Saudi Arabia at the beginning of each month. In February, before the crisis, the price of LPG was approximately $543 per ton. Following the closure of the Strait of Hormuz at the end of February, it surged to $775 per ton in April and reached nearly $790 per ton in June.
Thus, the international benchmark for LPG has increased by about 46% compared to February levels. The ministry stated that this is the reason for the rise in the cost of imported LPG.
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