Headline

Indian households continue to pay among the lowest cooking gas prices in the world

Extracted Data Points

Comparative Pricing Data (per 14.2 kg cylinder)

  • India (Ujjwala beneficiary effective price): ₹642
  • India (General consumer in Delhi): ₹942
  • Pakistan: ₹1,046 (Ujjwala price 39% lower)
  • Nepal: ₹1,207 (Ujjwala price 47% lower)
  • Bangladesh: approximately ₹1,225 (Ujjwala price 48% lower)
  • Sri Lanka: ₹1,241 (Ujjwala price 48% lower)
  • United States: approximately ₹1,755 (Ujjwala price 63% lower)
  • Australia: approximately ₹1,765 (Ujjwala price 64% lower)
  • Canada: approximately ₹2,411 (Ujjwala price 73% lower)

Cost Structure and Subsidy Mechanism

  • Current cost to supply a 14.2 kg cylinder: ₹1,600 to ₹1,700
  • Under-recovery per domestic cylinder: ₹600 to ₹700
  • Pradhan Mantri Ujjwala Yojana (PMUY) direct benefit transfer: ₹300 per cylinder (unchanged)
  • Commercial 19 kg cylinder price in Delhi: ₹3,113.50 (₹164 per kg)
  • Domestic household effective price: approximately ₹66 per kg
  • India imports more than 60% of its liquefied petroleum gas consumption

International Price Benchmark Movement

  • Saudi Contract Price (CP) for LPG (50:50 propane-butane blend):
  • January 2026 (pre-disruption): US$522.50 per tonne
  • February 2026 (pre-disruption): US$542.50 per tonne
  • April 2026 (post-Hormuz disruption): US$775.00 per tonne
  • Increase January to April: +US$252.50 per tonne (approximately +48%)
  • Propane CP changes:
  • January: US$525/t
  • February: US$545/t
  • April: US$750/t
  • Increase: +US$225/t (+43%)
  • Butane CP changes:
  • January: US$520/t
  • February: US$540/t
  • April: US$800/t
  • Increase: +US$280/t (+54%)

Supply Chain Management During Hormuz Disruption

  • Approximately 54% of India's LPG consumption was routed through Strait of Hormuz
  • Domestic LPG production increased by more than 60%: from 32 TMT to 52 TMT
  • India brought out the largest number of LPG-laden vessels of any country without paying any toll
  • Sourcing widened to include United States, Canada and Algeria
  • OTP-based delivery verification raised to about 90% to prevent subsidised LPG leakage
  • No shortage of any petroleum product occurred

Financial Impact and Compensation

  • FY 2024–25 OMC under-recovery on domestic LPG: ₹41,338 crore
  • FY 2025–26 OMC under-recovery (estimated): approximately ₹60,000 crore
  • Union Cabinet approved compensation to marketing companies: ₹30,000 crore
  • PMUY connections: 10.35 crore connections receiving direct benefit transfer
  • Effective Ujjwala price of ₹642 represents a 60% discount to actual international price
  • Recent price increase: ₹29 per cylinder despite international price surge