India Maintains Lowest Cooking Gas Prices Globally, Says Petroleum Ministry

The Indian Ministry of Petroleum and Natural Gas announced a revised domestic LPG price, increasing it by ₹29 to ₹942 per 14.2 kg cylinder for general consumers, while beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will pay an effective price of ₹642 after subsidies. This adjustment comes in response to escalating supply costs driven by geopolitical tensions in West Asia, which have reportedly raised the cost of imports to over ₹1,600 per cylinder. The government’s ongoing policy of absorbing these costs aims to shield consumers from the impact of spikes in international prices.

For the common citizen, this price increase translates into a marginal rise in household cooking expenses, albeit still significantly lower than those faced in neighboring countries and advanced economies. The fact that households in India, even after this revision, pay about 60% less than the international market price illustrates the government’s commitment to maintaining affordable energy access. However, the retail price hike may raise concerns among consumers about future increases, especially as international benchmarks remain volatile.

Looking ahead, the government’s strategy appears focused on balancing consumer protection with fiscal responsibility. The Union Cabinet’s allocation of ₹30,000 crore in compensation for under-recoveries suggests an acknowledgment of the fiscal pressures associated with maintaining subsidized prices. The Ministry has also indicated an effort to diversify supply sources and enhance domestic production to mitigate reliance on international imports. Overall, while immediate price adjustments have been made, the long-term outlook hinges on sustained geopolitical stability and the successful implementation of supply-side measures to ensure continued affordability for Indian households.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)