New Delhi, 07 June (H.S.):

India is among the countries providing cooking gas to consumers at some of the lowest prices globally, with beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively receiving a 14.2-kg LPG cylinder for ₹642, according to the Ministry of Petroleum and Natural Gas.

In a statement issued on Sunday, the ministry said that while the retail price of a domestic LPG cylinder for regular consumers in Delhi currently stands at ₹942, the actual supply cost has risen to more than ₹1,600 per cylinder due to prevailing international market conditions.

Under the Pradhan Mantri Ujjwala Yojana, eligible beneficiaries receive direct benefit transfer (DBT) assistance of ₹300 per cylinder on the first four refills each year. This translates into annual financial support of ₹1,200 per household. The ministry noted that even non-Ujjwala consumers continue to receive LPG cylinders at prices significantly below market-linked costs, benefiting from a subsidy equivalent to nearly ₹700 per cylinder.

According to the ministry, the effective LPG price for Ujjwala beneficiaries in India is ₹642. In comparison, a cylinder of a similar quantity costs approximately ₹1,046 in Pakistan, ₹1,207 in Nepal, about ₹1,225 in Bangladesh, and ₹1,241 in Sri Lanka.

The ministry further highlighted that LPG prices are substantially higher in several developed countries. The equivalent cost of a similar cylinder is around ₹1,755 in the United States, ₹1,765 in Australia, and ₹2,411 in Canada.

India imports a significant portion of its LPG requirements, making domestic prices sensitive to fluctuations in the international market. The ministry explained that LPG pricing is largely influenced by the Saudi Contract Price (CP), a global benchmark used for LPG trade.

The Saudi CP for LPG increased from US$542.50 per tonne in February to US$790 per tonne by June 2026, representing a rise of nearly 46 percent over the period.

Despite heightened tensions in West Asia and concerns over disruptions in the Strait of Hormuz, the ministry stated that India successfully maintained its energy supply chain. There were no shortages of petroleum products across the country, and LPG bottling as well as distribution operations continued without interruption.

The government emphasized that the full impact of rising LPG procurement costs has not been passed on to consumers. Instead, public-sector oil marketing companies and the central government have absorbed a substantial portion of the burden by covering the gap between actual costs and retail prices.

According to official estimates, the cumulative under-recovery on domestic LPG is expected to reach approximately ₹60,000 crore by the end of the 2025–26 financial year, compared with ₹41,338 crore a year earlier. To support oil marketing companies, the central government has approved compensation amounting to ₹30,000 crore.

The ministry also reported that more than 10.58 crore LPG connections have been provided under the Pradhan Mantri Ujjwala Yojana since its launch, making it one of the world's largest clean cooking fuel access programmes.

The government maintained that continued support for domestic LPG consumers reflects its commitment to ensuring affordable access to clean cooking energy despite rising global fuel prices and ongoing geopolitical uncertainties.

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Hindusthan Samachar / Jun Sarkar