India's Cooking Gas Prices Rise Amid Regional Comparisons

LPG Price Revision in India: A Calibrated Adjustment

Domestic LPG prices in India have been increased by Rs 60, making the 14.2 kg cylinder cost about Rs 913 in Delhi. This price revision is part of a calibrated adjustment aimed at balancing consumer protection with the financial sustainability of Oil Marketing Companies (OMCs).

Comparison with Neighbouring Countries Compared to neighbouring countries, India's LPG prices remain relatively lower. The 14.2 kg cylinder costs around Rs 1,046 in Pakistan, Rs 1,241 in Sri Lanka, and Rs 1,207 in Nepal.

Market-Linked Price Despite the recent revision, domestic LPG prices continue to remain below market-linked levels. The market-determined price of a 14.2 kg cylinder in Delhi on March 6, 2026 was around Rs 987, while it was being sold to consumers at Rs 853, roughly Rs 134 lower than the market price.

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Impact on PMUY Beneficiaries For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the impact on household cooking expenses remains modest. The estimated cost of cooking per day using LPG for a PMUY household has increased from about Rs 7.31 to Rs 8.11, an increase of less than Rs 1 per day.

Global LPG Prices India imports more than 60% of its LPG requirement, making domestic prices closely linked to international benchmarks such as the Saudi Contract Price (CP). Global LPG prices have witnessed sharp volatility in recent years, rising from around USD 415 per metric tonne in 2020-21 to USD 712 per metric tonne in 2022-23.

Government Support to OMCs The government has compensated Oil Marketing Companies (OMCs) for substantial losses incurred during 2024-25, amounting to around Rs 40,000 crore, with the government approving compensation of about Rs 30,000 crore to ensure uninterrupted supply and protect consumers. The government also compensated OMCs Rs 22,000 crore in FY 2022-23 to cover under-recoveries arising from keeping domestic LPG prices lower than international levels.