Commercial LPG up ₹111, but what about domestic cylinders? Govt explains

The government on Thursday said there has been no change in domestic LPG prices for household consumers amid reports of a ₹111 hike in commercial LPG cylinder prices. The Petroleum and Natural Gas Ministry said in a statement that commercial LPG pricing is market-determined and linked to international benchmarks.

“Accordingly, revisions in commercial LPG prices reflect movements in global LPG prices and associated costs,” the ministry said. “The prices of domestic LPG remains unchanged.”

India imports about 60% of its LPG requirement, making domestic prices sensitive to global movements.

While average Saudi Contract Price (CP) rose about 21% from $385 per metric tonne in July 2023 to $466 per metric tonne in November 2025, domestic LPG prices were cut by around 22% during the same period, from ₹1,103 in August 2023 to ₹853 in November 2025.

The effective price of a 14.2-kg domestic LPG cylinder, which costs around ₹950, is available at ₹853 for non-PMUY consumers in Delhi and ₹553 for PMUY beneficiaries, the ministry said. “This reflects a reduction of about 39% in the effective price for PMUY consumers…, underscoring the Government’s focused support to ensure sustained use of clean cooking fuel. There is no change in this pricing,” it added.

The government has approved continuation of a ₹300 per cylinder targeted subsidy for up to nine refills annually for PMUY consumers, involving an expenditure of ₹12,000 crore.

The ministry said that despite elevated international LPG prices during 2024–25, increases were not passed on to domestic consumers, leading to ₹40,000 crore losses for oil marketing companies.

The government recently approved ₹30,000 crore compensation to these companies to ensure uninterrupted supply at affordable prices.

Data from the Petroleum Planning and Analysis Cell showed that as of November 1, 2025, domestic LPG prices in India remained significantly lower than in neighbouring countries.

The effective price for PMUY beneficiaries in Delhi stood at ₹553 per cylinder, compared with ₹902 in Pakistan (Lahore), ₹1,227.58 in Sri Lanka (Colombo) and ₹1,205.72 in Nepal (Kathmandu).

The ministry noted that commercial LPG users number around 30 lakh, mainly large establishments such as hotels and restaurants, compared with over 33 crore domestic LPG consumers.

The ministry said consumers received further relief at the start of the New Year as prices of CNG and PNG were reduced in select cities from January 1. This included lower PNG prices in parts of the Delhi-NCR and a ₹1 cut each in CNG and domestic PNG prices announced by city gas distributors, following recent changes in pipeline tariffs.