New Delhi, January 1 (IANS). Amid reports of an increase of Rs 111 in the prices of commercial LPG cylinders, the government on Thursday said that the prices of commercial LPG are decided by the market and are directly linked to international benchmarks.
The Ministry of Petroleum and Natural Gas said any change in commercial LPG prices reflects changes in global LPG prices and related costs, while domestic LPG prices for domestic consumers remain unchanged.
The ministry said India imports about 60 percent of its total LPG requirement.
As a result, domestic LPG prices are linked to international prices, with the Saudi Contract Price (CP) serving as the global benchmark.
The ministry further said, “Accordingly, changes in commercial LPG prices reflect fluctuations in global LPG prices and related costs. Domestic LPG prices remain unchanged.”
While the average Saudi CP increased from $385 per metric ton in July 2023 to $466 per metric ton in November 2025, an increase of about 21 per cent, domestic LPG prices in India have actually declined by about 22 per cent during the same period.
The price of domestic LPG cylinder has decreased from Rs 1103 in August 2023 to Rs 853 in November 2025.
A 14.2 kg LPG cylinder is being given to domestic consumers for Rs 853 in Delhi, whereas its price is around Rs 950.
The effective price for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries is even lower, at Rs 553. This reflects the government’s focus on ensuring continued access to clean cooking fuel for the economically weaker sections. There has been no change in these prices.
For the financial year 2025-26, the government has approved continuation of targeted subsidy of Rs 300 per domestic LPG cylinder for PMUY beneficiaries covering up to nine refills per year.
An expenditure of Rs 12,000 crore has been approved for this, which strengthens the commitment towards affordable clean energy for homes. Despite the increase in international LPG prices during 2024-25, the increased price has not been passed on to domestic customers.
This caused a loss of approximately Rs 40,000 crore to Oil Marketing Companies (OMCs).
–IANS
abs/vc