No hike in domestic LPG prices; lower CNG and PNG rates offer New Year relief to consumers

The government on Thursday clarified that there has been no change in the prices of domestic LPG cylinders for household consumers, even as prices of commercial LPG cylinders have been revised in line with international market trends. The clarification comes amid media reports suggesting a ₹111 increase in commercial LPG cylinder prices.

The Ministry of Petroleum & Natural Gas said that commercial LPG prices are market-determined and linked to international benchmarks, particularly the Saudi Contract Price (CP). Any revision in commercial LPG rates reflects movements in global prices and associated costs. In contrast, domestic LPG prices remain unchanged, reaffirming the government’s commitment to protecting household consumers from global price volatility.

India imports nearly 60 per cent of its LPG requirement, making domestic prices sensitive to international trends. While the average Saudi CP increased by about 21 per cent—from USD 385 per metric tonne in July 2023 to USD 466 per metric tonne in November 2025—the price of domestic LPG was reduced by around 22 per cent during the same period, from ₹1,103 in August 2023 to ₹853 in November 2025.

To shield consumers, the effective price of a 14.2 kg domestic LPG cylinder, which costs around ₹950, is being made available at ₹853 for non-PMUY consumers in Delhi and at ₹553 for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). For PMUY beneficiaries, this represents a reduction of nearly 39 per cent—from ₹903 in August 2023 to ₹553 in November 2025. The government has confirmed that there is no change in these prices.

For the financial year 2025–26, the Centre has approved the continuation of a targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year for PMUY consumers, with a total budgetary outlay of ₹12,000 crore. These measures aim to ensure sustained access to clean cooking fuel for economically weaker households.

Despite elevated international LPG prices during 2024–25, the government said the increased costs were not passed on to domestic consumers, resulting in losses of about ₹40,000 crore for oil marketing companies (OMCs). To ensure uninterrupted supply and financial stability, the government has recently approved compensation of ₹30,000 crore to OMCs.

A comparison with neighbouring countries highlights the relative affordability of LPG in India. As of November 1, 2025, the effective price of a domestic LPG cylinder for PMUY beneficiaries in Delhi stood at ₹553, compared to ₹902 in Pakistan, ₹1,227 in Sri Lanka, and ₹1,206 in Nepal.

Meanwhile, consumers have also received New Year relief in the clean fuel segment, with prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) reduced in select cities from January 1. Gas distribution companies have announced a ₹1 per unit reduction in CNG and domestic PNG prices in parts of the Delhi-NCR region, following revisions in pipeline tariffs. The move is expected to ease household and transport fuel costs while encouraging wider adoption of cleaner fuels.

The Ministry also pointed out that the number of commercial LPG users is relatively small – around 30 lakh – compared to over 33 crore domestic LPG consumers. Commercial LPG is mainly used by hotels, restaurants and large establishments, while domestic LPG caters to household cooking needs nationwide.

Overall, the government reiterated that while commercial LPG prices reflect international market conditions, consistent and targeted measures have been taken to insulate domestic consumers, ensure affordability, and promote the use of clean cooking and transport fuels across the country.