New Delhi: Following allegations of an Rs 111 increase in the price of commercial LPG cylinders, the central government acknowledged on Thursday that commercial LPG pricing is market-determined and based on international standards. As a result, commercial LPG rates are routinely changed to account for volatility in global LPG pricing and logistics costs. At the same time, a Ministry of Petroleum and Natural Gas communiqué maintained that domestic LPG cylinder prices had not altered and would remain unaffected by international volatility.
As India is dependent on imports to meet around 60 per cent of its LPG requirement, the pricing of domestic LPG is intrinsically connected with the rest of the world, mainly with the Saudi CP. 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 - but the price of domestic LPG in India has moved in the opposite direction, the statement by the ministry highlighted. During the same period, the price of domestic LPG decreased by about 22 per cent, from Rs 1103 in August 2023 to Rs 853 in November 2025, it explained.
For the ease of domestic consumers, the prevailing rate of a domestic LPG cylinder weighing 14.2 kg and priced approximately Rs 950, will now be available to non-Pradhan Mantri Ujjwala Yojana (PMUY) consumers in Delhi at Rs 853, while PMUY recipients will avail it for Rs 553. Moreover, this will result in a dramatic cut of approximately 39 per cent in the rate for PMUY recipients, which will decrease from Rs 903 in August 2023 to Rs 553 in November 2025. These prices remained unchanged.
As reported by the Petroleum and Natural Gas Ministry, the government has approved the continued targeted subsidy amounting to Rs 300 per 14.2 kg LPG cylinder for the beneficiaries of the PMUY scheme for the financial year 2025-26. As per the approved estimates for this scheme, the total expenditure on the same would be Rs 12,000 crore, the ministry said. As explained by the government officials, this move is an indication that the government’s objective for providing access to clean energy on an affordable basis remains on track.
Despite the higher global LPG rates prevailing during the period of 2024-25, the government had decided not to transfer the higher cost to the consumer base. As a result, the oil marketing companies face losses amounting to approximately Rs 40,000 crore. In order to supply LPG to the nation and make it affordable, the government finally decided to pay compensation of Rs 30,000 crore to the OMCs.
A comparison of domestic LPG costs in neighbouring countries would highlight the subsidisation of LPG in India. As of November 1, 2025, the discounted price for 14.2 kg of household LPG available to PMUY Scheme participants in Delhi is Rs 553, compared to Rs 902.20 in Lahore, Rs 1,227.58 in Colombo, and Rs 1,205.72 in Kathmandu. The prices for non-PMUY clients in Delhi remain at Rs 853. The prices were obtained from the Petroleum Planning and Analysis Cell (PPAC).
On the other hand, the start of the new year has also relieved customers within the clean fuel category to some extent. The rates of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) have been decreased in certain cities, effective from
January 1, 2026.
This also covers decreased charges within the rates of Piped Natural Gas within the Delhi-NCR area, along with lowering the CNG and domestic Piped Natural Gas rates by Rs 1, declared by the city gas distribution firms, keeping in view the adjustments made within the rates of the respective pipelines.
On the issue of LPG prices for commercial users, it was highlighted by officials that the number of users for commercial LPG cylinders is considerably lower, pegged at 30 lakh consumers, including those using the public sector companies, whereas over 33 crores of domestic LPG users depend on domestic LPG. Justification for not reducing or lowering domestic LPG prices, according to officials, reflects the consistent effort of the government to shield the home users.
Nevertheless, in line with international LPG prices, which continue to influence commercial LPG prices in India, the Indian Government has been taking deliberate steps in regards to LPG prices in India in order to protect LPG consumers within India.