New Delhi, Jun 7: The Ministry of Petroleum and Natural Gas on Sunday said that Indian households continue to enjoy some of the lowest cooking gas prices in the world despite a sharp rise in international LPG prices following disruptions in West Asia.
According to the ministry, a beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) currently pays an effective Rs 642 for a 14.2 kg LPG cylinder after subsidy, while the general consumer in Delhi pays Rs 942. The ministry noted that the actual cost of supplying a cylinder has risen to more thanRs 1,600 due to higher global prices.
The ministry said Indian LPG consumers pay significantly less than consumers in neighbouring countries such as Pakistan, Nepal, Bangladesh and Sri Lanka, as well as developed economies including the United States, Australia and Canada.
It attributed the rise in LPG costs to the increase in the Saudi Contract Price (CP), the international benchmark for LPG. The benchmark has risen by about 46 per cent since February 2026 following disruptions in the Strait of Hormuz, a key global energy shipping route.
Despite the surge in international prices, the government has continued to shield domestic consumers from the full impact. The ministry said the under-recovery on each domestic LPG cylinder is currently around Rs 700, with public sector oil marketing companies and the government absorbing much of the burden.
The ministry highlighted that PMUY beneficiaries continue to receive a direct benefit transfer of Rs 300 per cylinder on the first four refills each year, amounting to Rs 1,200 annually per household. More than 10.58 crore PMUY connections are currently covered under the scheme.
The ministry also stated that India successfully maintained the flow of energy imports during the Strait of Hormuz disruption. It said Indian-flagged vessels continued transporting crude oil and LPG cargoes, ensuring uninterrupted supply across the country. As a result, there has been no shortage of petroleum products, and LPG bottling and distribution operations have continued normally.
To strengthen supply security, domestic LPG production was increased by over 60 per cent, while imports were diversified to countries such as the United States, Canada and Algeria. The government also intensified measures to prevent diversion of subsidised LPG for commercial use.
The ministry said cumulative under-recoveries on domestic LPG reached Rs 60,000 crore by the end of the last financial year, compared with Rs 41,338 crore a year earlier. To help offset these losses, the Union Cabinet has approved compensation of Rs 30,000 crore for oil marketing companies.
Emphasising the need for responsible consumption, the ministry urged consumers to use LPG judiciously and adopt energy-efficient cooking practices. It said that while the government has ensured affordable cooking gas despite extreme volatility in global markets, consumers should take utmost care in using this valuable resource and avoid wastage.
The ministry maintained that the government’s interventions have enabled Indian households to continue receiving cooking gas at prices well below international market levels, even during a period of heightened geopolitical uncertainty and rising energy costs.
