The retail price of a 14.2 kg domestic LPG cylinder in Delhi is Rs 942. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) receive a direct benefit transfer of Rs 300 per cylinder on the first four refills each year, resulting in an effective price of Rs 642 per cylinder for those refills. According to government data, the cost of supplying a domestic LPG cylinder has risen to over Rs 1,600.
Government data compares LPG prices across countries and states that a PMUY beneficiary in India pays Rs 642 per 14.2 kg cylinder, compared with approximately Rs 1,046 in Pakistan, Rs 1,207 in Nepal, approximately Rs 1,225 in Bangladesh, Rs 1,241 in Sri Lanka, approximately Rs 1,755 in the United States, approximately Rs 1,765 in Australia, and approximately Rs 2,411 in Canada.
India imports a substantial portion of its LPG requirements, and imported LPG costs are linked to the Saudi Contract Price (CP), set monthly by Saudi Aramco. According to government data, India previously imported around 60 per cent of its LPG requirements.
International Pricing and Domestic Cost Pressures
The Saudi CP for LPG (50:50 propane-butane blend) increased from approximately US$542.5 per tonne in February 2026 to US$775 per tonne in April 2026 and US$790 per tonne in June 2026. Propane CP rose from US$545 per tonne in February to US$760 per tonne in June, while butane CP increased from US$540 per tonne to US$820 per tonne during the same period.
Government data states that the cost of supplying a 14.2 kg domestic LPG cylinder, if priced on an import-linked basis, has risen to more than Rs 1,600, with an estimated under-recovery of approximately Rs 700 per domestic cylinder at current retail prices. The 19 kg commercial LPG cylinder used by hotels and businesses is revised monthly and was priced at Rs 3,113.50 in Delhi as of the latest update.
Supply Continuity and Government Measures
According to the Ministry, approximately 54 per cent of India’s LPG consumption was routed through the Strait of Hormuz. During the recent regional disruption, Indian-flagged vessels carrying crude oil and LPG continued operations, and no shortages of petroleum products were reported.
The Ministry states that domestic LPG production was increased from approximately 32 thousand metric tonnes (TMT) to around 52 TMT during the disruption period, while sourcing was expanded to suppliers including the United States, Canada, and Algeria. Measures to manage demand included encouraging a shift to piped natural gas (PNG) where available and increasing OTP-based delivery verification to around 90 per cent to reduce diversion of subsidised domestic LPG into commercial markets.
Government data shows cumulative under-recovery on domestic LPG at Rs 41,338 crore in FY 2024–25 and Rs 60,000 crore by the end of FY 2025–26. The Union Cabinet approved compensation of Rs 30,000 crore to oil marketing companies for LPG under-recovery. PMUY beneficiaries continue to receive a direct benefit transfer of Rs 300 per cylinder for eligible refills, covering more than 10.58 crore connections. |
