LPG price hike: India's cooking gas prices still lower than neighbours despite increase

• LPG cylinder price in Delhi rises by Rs 60 to Rs 913
• India's LPG prices remain lower than Pakistan, Sri Lanka, Nepal
• Government absorbs price hike to shield consumers

Did our AI summary help?

Despite the Rs 60 increase in the Domestic 14.2 kg Liquefied Petroleum Gas (LPG) cylinder, LPG prices in India remain lower than in several neighbouring countries, people familiar to the matter told ANI.

On Saturday 14.2 kg cylinder prices were increased by Rs 60, costing about Rs 913 in Delhi compared with around Rs 1,046 in Pakistan, Rs 1,241 in Sri Lanka and Rs 1,207 in Nepal.

People familiar with the matter said the latest hike translates to an increase of about 80 paise per family per day, or roughly 20 paise per person per day for cooking expenses.

The revision comes amid fluctuations in global LPG prices and is part of what officials describe as a calibrated adjustment aimed at balancing consumer protection with the financial sustainability of Oil Marketing Companies (OMCs).

Person familiar to the matter said that despite the recent revision, domestic LPG prices continue to remain below market-linked levels. The market determined price of a 14.2 kg cylinder in Delhi on March 6, 2026 was around Rs 987, while it was being sold to consumers at Rs 853, roughly Rs 134 lower than the market price. The pricing calculations indicated that the required increase could be around Rs 134 per cylinder, yet the government approved only Rs 60, absorbing the rest to protect consumers.

For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the impact on household cooking expenses remains modest. The estimated cost of cooking per day using LPG for a PMUY household has increased from about Rs 7.31 to Rs 8.11, an increase of less than Rs 1 per day.

India imports more than 60 per cent of its LPG requirement, making domestic prices closely linked to international benchmarks such as the Saudi Contract Price (CP). Global LPG prices have witnessed sharp volatility in recent years, rising from around USD 415 per metric tonne in 2020-21 to USD 712 per metric tonne in 2022-23, though the government has not passed on the full impact of these increases to consumers.

Despite elevated international prices, the government and OMCs have absorbed substantial losses to keep household LPG affordable.

OMCs incurred losses of around Rs 40,000 crore during 2024-25 while maintaining lower domestic prices, with the government approving compensation of about Rs 30,000 crore to ensure uninterrupted supply and protect consumers.

The Government compensated OMCs Rs 22,000 crore in FY 2022-23 to cover under-recoveries arising from keeping domestic LPG prices lower than international levels.