Domestic LPG prices in India have been increased by ₹60 per cylinder amid rising global energy costs, while the government says petrol and diesel prices will not rise for now.
Domestic LPG prices in India have been increased by ₹60 per cylinder
Households across India will now have to pay more for cooking gas after the government approved a ₹60 increase in the price of domestic LPG cylinders. The hike comes at a time when global energy markets are facing volatility due to the ongoing conflict in West Asia.
Despite concerns that fuel prices might also increase, government officials have clarified that petrol and diesel prices will remain unchanged for now. Authorities said state-run oil companies have enough financial capacity to absorb rising costs without immediately passing them on to consumers.
The decision affects millions of households that rely on LPG for cooking, although the government has maintained subsidy support for beneficiaries of the Ujjwala scheme.
Following the latest revision, the price of a 14.2-kg domestic LPG cylinder has increased across major cities in India.
According to the official pricing data, the new rates are:
Prices may vary slightly from state to state because local taxes and value-added tax (VAT) differ depending on regional policies. The hike marks the second increase in domestic LPG prices in the last 11 months, after a previous revision of ₹50 in April last year.
Officials said the increase in cooking gas prices became necessary due to rising global energy costs. “Price increase necessitated because of spike in global energy rates”
Government sources also noted that even after the price increase, the domestic LPG cylinder remains below the break-even cost of around ₹1,050 required to fully cover international import expenses.
According to officials, the government continues to absorb part of the cost burden to keep prices lower for Indian consumers. Authorities also highlighted that LPG prices in India remain comparatively cheaper than in several neighbouring countries.
For example:
These comparisons, officials said, demonstrate that Indian LPG prices are still relatively affordable despite the latest increase.
While the overall LPG price has increased, households that receive government assistance under the Pradhan Mantri Ujjwala Yojana will continue to benefit from a subsidy. More than 10 crore beneficiaries who received free LPG connections under the scheme will still receive ₹300 subsidy per cylinder for up to 12 refills each year.
After applying the subsidy, eligible beneficiaries will pay ₹613 for a 14.2-kg cylinder instead of the full market price. The subsidy programme was introduced in 2016 to provide clean cooking fuel to low-income households and reduce reliance on traditional fuels such as firewood and coal.
The government also raised the price of commercial LPG cylinders, which are commonly used by restaurants, hotels and other businesses. The cost of a 19-kg commercial LPG cylinder has increased by ₹114.5.
This change is expected to affect hospitality businesses, although the extent of the impact on food prices will depend on how businesses adjust their operating costs.
Despite the increase in LPG prices, the government has said there are no immediate plans to raise petrol and diesel prices.
Officials said the country’s three major state-run fuel retailers, Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), have sufficient financial strength to manage fluctuations in global crude oil prices.
Retail petrol and diesel prices have remained largely unchanged since April 2022, with oil companies sometimes absorbing losses when international crude prices rise.
During periods when crude oil prices fall, these companies recover earlier losses through improved margins.
The latest LPG price hike comes as the global energy market faces renewed uncertainty due to escalating tensions in the Middle East.
The recent conflict involving the United States, Israel and Iran has disrupted shipping routes in the region. One of the most critical chokepoints for global energy supply is the Strait of Hormuz, located between Iran and Oman.
This narrow sea route handles a large share of the world’s oil and gas exports. Recent security concerns have slowed tanker movement through the strait, causing fluctuations in global energy prices.
As international energy costs continue to rise, governments around the world are facing increasing pressure to balance domestic fuel prices with global market realities.
