No Change in Domestic LPG Prices Amid Commercial Rate Hike
In response to recent media reports about a ₹111 increase in the price of commercial LPG cylinders, the government has clarified that commercial LPG prices are set by market dynamics and are closely tied to international benchmarks. While commercial prices may fluctuate, the cost of domestic LPG will remain unchanged, ensuring stability for households reliant on this essential resource.
According to government data, India imports approximately 60% of its LPG, connecting domestic prices to global markets, particularly the Saudi Contract Price (CP). Despite a notable rise in the average Saudi CP—climbing from US$ 385 per metric tonne in July 2023 to US$ 466 per metric tonne by November 2025—domestic LPG prices have actually seen a reduction of about 22%, falling from ₹1103 in August 2023 to ₹853 in November 2025.
To enhance affordability, the government has implemented measures for non-PMUY (Pradhan Mantri Ujjwala Yojana) domestic consumers in Delhi, where the effective cost of a 14.2 kg cylinder stands at ₹853. Meanwhile, PMUY beneficiaries enjoy even more substantial relief, paying just ₹553 per cylinder, marking a 39% reduction from the ₹903 cost in August 2023. This ongoing support illustrates the government’s dedication to promoting the use of clean cooking fuels.
For the fiscal year 2025-26, the government has confirmed the continuation of a targeted subsidy of ₹300 per cylinder for PMUY beneficiaries, allowing for up to nine refills annually, with an allocated budget of ₹12,000 crore. Even amid rising international LPG prices, the government has invested ₹30,000 crore to compensate Oil Marketing Companies (OMCs) for losses incurred due to the decision not to pass on cost increases to domestic consumers.
A comparative analysis as of November 1, 2025, reveals that Indian consumers benefit from lower domestic LPG prices compared to neighboring countries, with the effective cost for PMUY beneficiaries in Delhi at ₹553, contrasted with ₹902.20 in Pakistan and substantially higher in Sri Lanka and Nepal.
Positive Developments for Clean Fuel Consumers
As the New Year approaches, consumers can also look forward to reduced prices for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in select areas, effective January 1. These reductions, resulting from recent changes in pipeline tariffs, aim to alleviate the financial burden on households and encourage wider adoption of clean fuels.
It is crucial to note that commercial LPG cylinder users represent a significantly smaller demographic, totaling around 30 lakh compared to over 33 crore domestic LPG consumers who rely on it for household cooking. The government’s commitment to keeping domestic LPG prices stable amidst commercial price hikes emphasizes their focus on protecting everyday consumers.
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