Govt Says Domestic LPG Prices Unchanged, Consumers Protected
New Delhi, April 1: The Ministry of Petroleum and Natural Gas has clarified that the recent increase in commercial LPG cylinder prices is driven by global market factors, particularly a sharp rise in international rates.
According to the Ministry, commercial LPG prices are deregulated and market-driven, and are revised on a monthly basis. The latest price hike has been attributed to a 44% surge in the Saudi Contract Price, which rose from $542 per metric tonne in March to $780 per metric tonne in April.
The government also noted that 20–30% of global LPG supplies are currently stuck in the Strait of Hormuz, contributing to supply disruptions and price pressures.
Despite the increase in commercial cylinder rates, the Centre assured that domestic consumers remain protected: 14.2 kg domestic LPG cylinder: ₹913 (unchanged) and PMUY beneficiaries: ₹613 (unchanged).
The government reiterated its commitment to shielding households from global price volatility.
The Ministry stated that Oil Marketing Companies (OMCs) are currently facing an under-recovery of around ₹380 per cylinder. It added that cumulative losses could reach approximately ₹40,484 crore by end-May.
Last year, out of total losses of ₹60,000 crore, the burden was shared equally between Oil PSUs and the Government of India to protect consumers.
The Centre highlighted that India’s domestic LPG prices remain among the lowest globally, compared to neighbouring countries: Pakistan: ₹1,046, Sri Lanka: ₹1,242 and Nepal: ₹1,208.
With commercial LPG prices rising, sectors such as hotels, restaurants, and small businesses are expected to face increased operational costs.
The government, however, maintained that the current pricing mechanism ensures market stability while protecting domestic consumers.
