LPG Price Hike: The price of LPG gas cylinders has reached ₹1600 in the international market. Yet, the Indian government is still providing cooking gas at a much cheaper rate than in many other countries.
Cheapest LPG available in India
LPG Price Hike: The ongoing war between the US and Iran is causing crude oil prices to rise, with repercussions being felt worldwide. Petrol, diesel, and gas prices are also steadily rising. Specifically, in India, domestic LPG cylinder prices have increased for the second time in three months. Since June 7th, the price of a 14.2-kg domestic cylinder in Delhi has risen by ₹29 to ₹942.
Domestic gas is cheaper in India.
Despite the increase in prices in the international market, cooking gas in India is still much cheaper than in many countries around the world. According to the Petroleum Ministry, the actual cost of a domestic LPG cylinder has now exceeded ₹1,600, but the average consumer in Delhi gets it for ₹942. Meanwhile, after receiving a subsidy of ₹300 per cylinder for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the effective price is only ₹642.
The rise in international prices
means that even ordinary consumers are paying around ₹700 less than the market price, while Ujjwala Yojana beneficiaries are receiving even greater relief. LPG import prices in India are linked to the Saudi Contract Price (Saudi CP). This price was $543 per tonne in February, rising to $775 in April and nearly $790 per tonne in June. This means international prices have increased by approximately 46% in four months.
If the entire burden of this increase were passed on to consumers, cylinders would become significantly more expensive. However, the central government and state-owned oil companies are bearing a large portion of this extra cost.
LPG is cheaper in India
. Compared to other countries, LPG is much cheaper in India. Ujjwala Yojana beneficiaries get a cylinder for ₹642, while it costs around ₹1,046 in Pakistan, ₹1,207 in Nepal, ₹1,225 in Bangladesh, and ₹1,241 in Sri Lanka. In developed countries like the US and Australia, the price of a cylinder is over ₹1,750, while in Canada it reaches over ₹2,400.
