A day after domestic LPG cylinder prices were increased by Rs 29, the Centre defended the move, stating that Indian households continue to receive cooking gas at rates significantly lower than the actual cost of supply despite rising international energy prices. The Ministry of Petroleum and Natural Gas said the increase was necessitated by a sharp surge in global LPG prices following disruptions linked to the ongoing West Asia crisis.
The latest hike has drawn criticism from opposition leaders, who argued that consumers were not given adequate relief when global crude oil prices were lower. They also expressed concerns that rising fuel costs could add to inflationary pressures and increase the burden on middle-class households. In a post on X, the Congress wrote, “‘Inflation Man Modi’ has cracked the whip again. Now the domestic gas cylinder has been made 29 rupees more expensive. Modi’s formula is clear—extort from the public, fill the coffers of rich friends.”
According to the ministry, a standard 14.2-kg domestic LPG cylinder in Delhi now costs Rs 942 for general consumers. The government noted that beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) continue to receive additional support through a direct benefit transfer of Rs 300 per cylinder on the first four refills annually. This effectively reduces the price paid by eligible households to around Rs 642 per cylinder. Officials said even non-PMUY consumers are paying substantially less than the market-linked cost of LPG.
The ministry explained that India imports nearly 60 per cent of its LPG requirement, making domestic prices sensitive to international market trends. It said the Saudi Contract Price (CP), which serves as a key benchmark for LPG imports, has witnessed a sharp increase since February. The benchmark reportedly rose significantly after disruptions in the Strait of Hormuz affected global energy markets. As a result, the cost of imported LPG has increased sharply, pushing the supply cost of domestic cylinders above Rs 1,600.
Defending the pricing policy, the ministry said households have not been asked to bear the full impact of rising international costs. The ministry added that the under-recovery on every domestic LPG cylinder remains around Rs 700 even after the latest revision.