Commercial LPG Cylinder Pricing Reflects International Benchmark Pricing: Govt

Amid reports of a Rs 111 increase in the price of commercial LPG cylinders, the Government on Thursday said that commercial LPG prices are market-determined and directly linked to international benchmarks. Any revision in commercial LPG prices reflects changes in global LPG prices and related costs, while domestic LPG prices for household consumers remain unchanged, Ministry of Petroleum & Natural Gas said.

The ministry said that India imports around 60 per cent of its total LPG requirement. As a result, domestic LPG pricing is linked to international prices, with Saudi Contract Price (CP) acting as the global benchmark. “Accordingly, revisions in commercial LPG prices reflect movements in global LPG prices and associated costs. The prices of domestic LPG remains unchanged,” the ministry added.

While the average Saudi CP increased by about 21 per cent from $ 385 per metric tonne in July 2023 to $ 466 per metric tonne in November 2025, domestic LPG prices in India were actually reduced by around 22 per cent during the same period.

The price came down from Rs 1103 in August 2023 to Rs 853 in November 2025. To protect household consumers, the effective price of a 14.2 kg domestic LPG cylinder, which costs around Rs 950, is being provided at Rs 853 for non-PMUY consumers in Delhi.

For beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY), the effective price is even lower at Rs 553. This marks a reduction of nearly 39 per cent for PMUY consumers, compared to Rs 903 in August 2023, highlighting the Government’s focus on ensuring continued access to clean cooking fuel for economically weaker sections. There has been no change in these prices.

For the financial year 2025–26, the Government has approved the continuation of a targeted subsidy of Rs 300 per domestic LPG cylinder for PMUY beneficiaries, covering up to nine refills per year.

An expenditure of Rs 12,000 crore has been approved for this purpose — reinforcing the commitment to affordable clean energy for households.

Despite a rise in international LPG prices during 2024–25, the increased cost was not passed on to domestic consumers. This resulted in losses of about Rs 40,000 crore for Oil Marketing Companies (OMCs).