Indian households continue to pay among the lowest prices for cooking gas globally, with domestic LPG rates remaining significantly below those in neighbouring countries and advanced economies despite a sharp rise in international energy prices, the Ministry of Petroleum and Natural Gas said on Sunday.
According to official data, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively pay ₹642 for a 14.2 kg LPG cylinder after receiving a direct benefit transfer of ₹300 on the first four refills each year, while the general consumer in Delhi pays ₹942. In comparison, LPG prices are higher in neighbouring countries such as Pakistan, Nepal, Bangladesh and Sri Lanka, and substantially costlier in countries including the United States, Australia and Canada.
The ministry said the cost of supplying a domestic LPG cylinder has risen to over ₹1,600 following a sharp increase in global prices, particularly after disruptions in the Strait of Hormuz pushed the Saudi Contract Price (CP) for LPG up by around 46 per cent between February and June 2026. Despite this, consumers have been shielded from the full impact of the increase, with the under-recovery on each domestic cylinder estimated at about ₹700.
According to the ministry, India was among the few countries that managed to keep energy cargoes moving through the Strait of Hormuz during the crisis, ensuring uninterrupted supplies of crude oil and LPG. The government also increased domestic LPG production, diversified sourcing from countries including the United States, Canada and Algeria, and strengthened monitoring to prevent diversion of subsidised cylinders.
The petroleum ministry noted that cumulative under-recoveries on domestic LPG reached around ₹60,000 crore by the end of the last financial year, compared to ₹41,338 crore a year earlier. To support public sector oil marketing companies, the Union Cabinet has approved compensation of ₹30,000 crore.
More than 10.58 crore PMUY beneficiaries continue to receive an additional subsidy of ₹300 per cylinder, helping keep cooking gas affordable despite volatile global energy markets, the ministry said.
