The tensions in West Asia initially led to a significant increase in the price of LPG cylinders. Supply disruptions impacted actual prices. The price of a 14.2 kg domestic LPG cylinder also increased significantly. However, a hidden subsidy of over ₹700 was being provided to domestic cylinders to keep retail prices affordable for consumers. Minister of State for Petroleum and Natural Gas Suresh Gopi clarified in Parliament that despite the significant increase in gas prices in the international market, the government did not pass on the burden to the common man. What is the actual situation? What is the basic price of a cylinder and what is the actual market price in the current situation? 

What is the actual price of the cylinder?

Due to global uncertainty and geopolitical tensions, the price of a 14.2 kg domestic gas cylinder has risen to over ₹1,600. However, customers are purchasing the same cylinder for ₹942. This means that the government and state-owned oil companies are incurring a loss of over ₹700 per cylinder to cover this  price difference, ensuring that the budget of the average household is not affected.

What has the ministry clarified?

The ministry said that LPG prices across the world rose sharply after the conflict broke out in West Asia. The Saudi contract price, which is the international benchmark for LPG prices, increased to US$ 780 per metric ton in April and May 2026 and further increased to US$ 796 per metric ton in June. Based on these international prices, the ministry said the market-determined price of a 14.2 kg domestic LPG cylinder was ₹1,695 in June. This huge subsidy of ₹30,000 crore has also been given to oil companies between financial years 2025-26 and 2026-27.

Beneficiaries of the Pradhan Mantri Ujjwala Yojana receive a direct subsidy of ₹300 from the government in their bank accounts. Additionally, they receive an indirect subsidy of ₹700. This means they benefit up to ₹1,000 per cylinder, as Ujjwala beneficiaries receive a cylinder for ₹642.

What is the price of LPG today?
There has been no change in the price of gas cylinders across the country today. There has been no change in the prices of both domestic and commercial cylinders. In Delhi, the price of domestic cylinder is Rs 942 and that of commercial cylinder is Rs 2,930. Similarly, in Mumbai, the price of domestic and commercial cylinders is Rs 941.50 and Rs 2,882 respectively. In Bengaluru, the price of domestic cylinder is Rs 948.50 and that of commercial cylinder is Rs 3,006.

PC: Rochak Khabre