Domestic LPG cheapest in India despite price hike, says Modi govt; how cooking gas rates fare in Pakistan, US, Canada
After the prices of domestic LPG (Liquefied Petroleum Gas) cylinders were hiked by ₹29, the petroleum and natural gas ministry said that Indian households still
After the prices of domestic LPG (Liquefied Petroleum Gas) cylinders were hiked by ₹29, the petroleum and natural gas ministry said that Indian households still continue to enjoy the most affordable rates of the cooking gas. The latest price hike of the 14.2 kg LPG cylinder — the second such increase since the West Asia conflict broke out — meant that the rates have increased by ₹89 cumulatively. With this, the price of domestic LPG stands at ₹942 per cylinder. However, the Ministry of Petroleum and Natural Gas said that Indian households are still purchasing LPG cylinders at “much cheaper rates” when compared to neighbouring countries or even developed economies including the US, Canada and Australia. The ministry pressed that LPG prices are linked to international markets and that the Central government is continuing to modulate effective prices for the domestic consumer, despite fluctuations owing to the US-Iran war.
How cooking gas prices fare “What the household does not bear the brunt of is the several hundred rupees a cylinder which the Government is bearing. Through a period of sharp international cost increases, that burden has been absorbed upstream rather than passed to the consumer,” a press release issued by the ministry stated. It added that a beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) pays an effective ₹642 for a 14.2 kg cylinder, and the general consumer in Delhi ₹942, against a cost to supply that has now risen to over ₹1,600. The table below shows how LPG prices fare when compared to neigbouring countries and developed economies, according to data shared by the ministry. The final column shows how far the effective Ujjwala price of ₹642 a cylinder sits below the price in each market. Market Price per 14.2 kg cylinder (₹) Ujjwala consumer pays less by India (Ujjwala, effective after revision) 642 — Pakistan 1,046 about 39% Nepal 1,207 about 47% Bangladesh approx.
1,225 about 48% Sri Lanka 1,241 about 48% United States approx. 1,755 about 63% Australia approx. 1,765 about 64% Canada approx. 2,411 about 73% The ministry reiterated that a PMUY beneficiary will additionally receive the direct benefit transfer of ₹300 a cylinder on the first four refills each year and so pays an effective ₹642 on those refills. “Even a non-PMUY household would pay about ₹700 below the market-linked cost of the cylinder,” it added. How LPG is priced: The commercial cylinder used by hotels and businesses is revised automatically every month, because its price is a direct pass-through of the international benchmark. The domestic cooking cylinder is not. India used to import 60% of its LPG requirements, and the landed cost of that import tracks the Saudi Contract Price (CP) that Saudi Aramco sets at the start of each month. This is an external price over which the Indian consumer has no control.
