New Delhi, December 15 — Rajya Sabha MP Chunnilal Garasiya on Monday raised concerns over the affordability of domestic LPG cylinders, particularly for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), during Question Hour in Parliament.
Through Starred Question No. 159, Garasiya sought clarity from the Union Ministry of Petroleum and Natural Gas on the steps taken by the government to keep LPG prices affordable. He also asked about India’s LPG pricing compared to neighbouring countries, the government’s strategy to diversify LPG import sources, and whether losses incurred by oil marketing companies (OMCs) due to under-recoveries were being compensated by the Centre.
Government Response on LPG Pricing and Subsidy
Replying to the question, Union Petroleum and Natural Gas Minister Hardeep Singh Puri stated that India imports nearly 60 percent of its LPG requirement, making domestic prices inherently linked to international market trends.
He pointed out that while the average Saudi Contract Price (CP)—the global benchmark for LPG pricing—rose by 21 percent, from USD 385 per metric tonne in July 2023 to USD 466 per metric tonne in November 2025, domestic LPG prices in India moved in the opposite direction. During the same period, the price of a domestic LPG cylinder declined by nearly 22 percent, from ₹1,103 in August 2023 to ₹853 in November 2025.
Targeted Support for PMUY Beneficiaries
The minister informed the House that for FY 2025–26, the government is providing targeted financial assistance of ₹300 per 14.2 kg LPG cylinder for up to nine refills to PMUY beneficiaries. Proportionate support is also extended to users of 5 kg LPG connections.
At present, the retail price of a 14.2 kg LPG cylinder in Delhi is ₹853. After applying the subsidy, PMUY consumers effectively pay ₹553 per cylinder. This represents a 39 percent reduction in effective LPG prices for PMUY households—from ₹903 in August 2023 to ₹553 in November 2025.
India Cheaper Than Neighbours on LPG
Highlighting regional comparisons as of November 1, 2025, the minister noted that India’s effective LPG prices remain significantly lower than those in neighbouring countries:
India (Delhi): ₹553
Pakistan (Lahore): ₹902.20
Sri Lanka (Colombo): ₹1,227.58
Nepal (Kathmandu): ₹1,205.72
Diversifying LPG Imports to Strengthen Energy Security
To reduce risks arising from geopolitical disruptions and ensure supply security, the government is actively diversifying LPG import sources. As part of this strategy, public sector OMCs have contracted approximately 2.2 million metric tonnes (MMT) of US-origin LPG for calendar year 2026.
This volume accounts for nearly 10 percent of India’s total LPG import requirement and marks a significant step toward reducing reliance on traditional suppliers from the Gulf region, thereby enhancing the country’s long-term energy resilience.
