India Maintains Low LPG Prices Amid Global Market Pressures
Indian households benefit from some of the lowest cooking gas prices globally, with an effective rate of Rs 642 per 14.2 kg cylinder for PMUY beneficiaries and Rs 942 for general consumers, against supply costs exceeding Rs 1,600. Despite price hikes linked to international market fluctuations, the government continues to subsidize domestic LPG prices significantly.
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The effective price for a 14.2 kg LPG cylinder in India is currently Rs 642 for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries and Rs 942 for general consumers, significantly lower than the market-linked cost of over Rs 1,600. Domestic LPG prices have increased by Rs 29 due to rising costs from the West Asia crisis.
The under-recovery on domestic LPG is estimated at Rs 700 per cylinder, amounting to a cumulative under-recovery of Rs 60,000 crore for the last financial year. India imports 60% of its LPG, with prices linked to the Saudi Contract Price, which saw a 46% increase from February to June 2026.
The government has intensified measures to ensure supply and efficiency, including enhancing domestic production and encouraging the use of piped natural gas. The current pricing structure allows Indian households to access LPG at prices much lower than those in neighboring countries and advanced economies.
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