Govt says India’s LPG Rates among world’s lowest
New Delhi, Jun 7: The Centre on Sunday said Indian households continue to pay among the lowest prices for cooking gas globally despite a recent increase in domestic LPG rates, attributing the hike to a sharp rise in international prices following disruptions in West Asia.
The price of a 14.2-kg domestic LPG cylinder was increased by Rs 29, taking the Delhi retail price to Rs 942 from Rs 913. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to receive a subsidy of Rs 300 per refill on the first four refills annually, effectively paying Rs 642 per cylinder.
The latest increase comes after a Rs 60 hike in March, taking the cumulative rise this year to Rs 89 per cylinder. According to the government, state-run oil marketing companies were incurring losses of around Rs 703 per cylinder before the latest revision.
In a statement, the government said the cost of supplying a domestic LPG cylinder has risen to over Rs 1,600 due to a surge in international prices. India’s LPG import costs are linked to the Saudi Contract Price (CP), the global benchmark for LPG, which has increased by about 46 per cent since February following supply disruptions linked to the Strait of Hormuz.
Despite the hike, the government said LPG prices in India remain lower than those in neighbouring countries such as Pakistan, Nepal, Bangladesh and Sri Lanka, and significantly below prices in countries like the United States, Australia and Canada.
The Centre also highlighted that India managed to maintain uninterrupted LPG and petroleum supplies during the West Asia crisis. It increased domestic LPG production, diversified imports from countries including the US, Canada and Algeria, and ensured steady shipments through alternative supply arrangements.
According to the government, cumulative under-recoveries on domestic LPG sales rose to nearly Rs 60,000 crore in the last financial year, up from Rs 41,338 crore a year earlier. To partly offset these losses, the Union Cabinet has approved Rs 30,000 crore in compensation for oil marketing companies.
The government said domestic LPG prices are moderated to protect consumers from volatile global energy markets. While commercial LPG cylinder prices are revised monthly in line with international rates, domestic cooking gas prices are regulated to reduce the burden on households.
Officials said measures such as boosting domestic production, encouraging the use of piped natural gas where available, and strengthening checks against diversion of subsidised LPG helped ensure uninterrupted supplies during the recent geopolitical crisis.
