In recent months, global liquefied petroleum gas (LPG) prices have experienced a significant surge, primarily due to disruptions in West Asia and the Strait of Hormuz. Despite this global uptick, the Indian government has maintained that domestic LPG prices remain among the lowest worldwide.
**Recent Price Adjustments**
On June 7, 2026, the Indian government announced an increase of ₹29 per 14.2 kg domestic LPG cylinder, raising the price in Delhi from ₹913 to ₹942. This follows a ₹60 hike on March 7, totaling a ₹89 increase over the past three months. However, even with these adjustments, the government asserts that Indian consumers continue to pay significantly less than their counterparts in neighboring countries and advanced economies.
**Global Price Surge and Its Impact**
The surge in global LPG prices is attributed to disruptions in West Asia and the Strait of Hormuz, vital routes for global energy transportation. India imports approximately 60% of its LPG requirements, with domestic prices closely linked to international benchmarks, particularly the Saudi Contract Price. In February, the Saudi benchmark stood at about $542.5 per tonne. Following the disruptions, it rose to $775 per tonne in April and further to $790 per tonne in June, marking a 46% increase since the pre-crisis level. Consequently, the cost of supplying a domestic LPG cylinder in India has exceeded ₹1,600.
**Government’s Defense of Domestic Pricing**
Despite the global price surge, the Indian government emphasizes that domestic consumers are shielded from the full impact. The government points to several factors:
– **Regulated Pricing:** The government continues to regulate LPG prices, ensuring they remain affordable for the general populace.
– **Ujjwala Scheme Support:** Beneficiaries of the Pradhan Mantri Ujjwala Yojana, a government initiative aimed at providing clean cooking fuel to low-income households, pay a subsidized rate of ₹642 per eligible refill.
– **Oil Companies’ Under-Recoveries:** State-owned oil marketing companies absorb a significant portion of the cost through under-recoveries, preventing the full brunt of global price increases from being passed on to consumers.
The government further asserts that Indian households continue to purchase cooking gas at prices much lower than those in neighboring countries and advanced economies such as the United States, Australia, and Canada.
**Comparative Pricing**
To provide context, here is a comparison of domestic LPG cylinder prices in select countries:
| Country | Price per 14.2 kg Cylinder (₹) |
|—————-|——————————-|
| India | 942 |
| United States | 2,500 |
| Australia | 2,200 |
| Canada | 2,000 |
| Pakistan | 1,200 |
| Bangladesh | 1,000 |
*Note: Prices are approximate and may vary based on local taxes and subsidies.*
**Political Reactions**
The recent price hike has elicited criticism from various political quarters. The Congress party, for instance, has revived its “inflation man” critique of Prime Minister Narendra Modi, questioning the government’s handling of rising living costs. They argue that while global prices have increased, the government’s regulatory measures should have mitigated the impact on domestic consumers.
**Conclusion**
While global LPG prices have surged due to geopolitical tensions, the Indian government’s regulatory measures, support schemes like the Ujjwala Yojana, and the absorption of costs by oil companies have kept domestic LPG prices relatively low. However, the recent price hikes indicate that the government is adjusting to the evolving global energy landscape. Consumers are advised to stay informed about these changes and consider energy conservation measures to mitigate the impact of rising fuel costs.
This article is AI-generated content. Please verify the information independently before taking any action based on this article.
