Domestic LPG prices were increased by ₹29 per 14.2 kg cylinder on Saturday, taking the rate in Delhi from ₹913 to ₹942, even as the Centre said the cost of supplying one cylinder has risen to over ₹1,600.
The hike, the second increase in 3 months, drew criticism from Opposition parties, which accused the government of adding to household pressure at a time of high living costs.
The Ministry of Petroleum and Natural Gas, however, said Indian households continue to pay among the lowest cooking gas prices globally, with Ujjwala beneficiaries paying an effective ₹642 per cylinder after a ₹300 direct benefit transfer on the first 4 refills every year.
According to the ministry, the Saudi Contract Price benchmark for LPG rose by about 46% between February and June 2026, from $542.50 per tonne to $790 per tonne, after disruption around the Strait of Hormuz tightened Gulf supplies.
The ministry said the import-linked cost of supplying a 14.2 kg domestic cylinder has now crossed ₹1,600, leaving an under-recovery of about ₹700 on every domestic cylinder. It added that the cumulative under-recovery on domestic LPG reached about ₹60,000 crore by the end of the last financial year, up from ₹41,338 crore a year earlier.
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The Union Cabinet has approved ₹30,000 crore in compensation to public sector oil marketing companies for LPG under-recovery. This is separate from the Ujjwala subsidy, which reaches more than 10.58 crore connections.
The ministry said India kept LPG and crude oil cargoes moving through the Strait of Hormuz during the disruption and there was no shortage of any petroleum product. About 54% of India’s LPG consumption was routed through the Strait, making cooking gas supplies directly exposed to the disruption.
To secure supply, domestic LPG production was raised by more than 60%, from about 32 TMT to about 52 TMT. Sourcing was also widened to countries including the United States, Canada and Algeria.
The ministry said the effective Ujjwala price of ₹642 is about 60% below the actual international price of an LPG cylinder, while the non-PMUY price of ₹942 is about 45% below the international price.
Opposition parties attacked the government over the hike, arguing that the increase would affect household budgets. The government’s wider defence is that consumers are still being shielded from a much larger global price shock through regulated prices, under-recoveries and direct subsidy support.
