Domestic LPG prices have been raised by ₹29/cylinder, marking the second increase in three months and drawing criticism from opposition parties. The Union government has defended the hike, citing a sharp rise in global LPG prices and supply disruptions in West Asia.
Following the latest revision, the price of a 14.2kg domestic LPG cylinder in Delhi has increased from ₹913 to ₹942, while in Kolkata, the price has risen from ₹939 to ₹968.
The government clarified that beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to pay an effective price of ₹642/cylinder after receiving a subsidy of ₹300/refill on the first four refills each year.
The increase comes amid rising international energy prices triggered by disruptions in the Strait of Hormuz, a vital maritime route through which a significant share of India's crude oil and LPG imports are transported.
According to the Union ministry of petroleum and natural gas (MoPNG), the cost of supplying a 14.2kg LPG cylinder has risen to over ₹1,600 because of the West Asia crisis, while oil marketing companies (OMCs) are currently absorbing losses of nearly ₹700 on every domestic cylinder sold.
"The government has absorbed a substantial part of the increase to shield consumers from the impact of volatile global energy markets," the ministry said.
MoPNG noted that the Saudi contract price (CP), the international benchmark for LPG, rose by about 46% between February and June as supply tightened following disruptions around the Strait of Hormuz.
Officials said nearly 54% of India's LPG consumption depends on supplies routed through the Strait, making the country particularly vulnerable to the ongoing crisis. Despite these challenges, India has maintained uninterrupted fuel supplies and avoided shortages by ensuring continued movement of energy cargoes through the region.
The ministry said domestic LPG production has increased by more than 60%, from about 32TMT (thousand metric tonnes) to around 52TMT. India has also diversified sourcing by procuring additional supplies from countries such as the US, Canada and Algeria.
To curb misuse of subsidised LPG, the government has strengthened anti-diversion measures. OTP-based delivery verification now covers nearly 90% of deliveries, according to official data.
The government further argued that cooking gas prices in India remain among the lowest globally. It pointed out that PMUY beneficiaries pay ₹642/cylinder which is lower than LPG prices in neighbouring countries such as Pakistan, Nepal, Bangladesh and Sri Lanka.
At the same time, OMCs continue to face mounting financial pressure. The ministry said cumulative under-recoveries on domestic LPG sales reached ₹60,000 crore by the end of the last financial year, up from ₹41,338 crore a year earlier. To partly offset these losses, the Union Cabinet has approved compensation of ₹30,000 crore for OMCs.
However, the latest price hike has attracted sharp criticism from opposition leaders, who say it places an additional burden on households already struggling with inflation.
Nationalist Congress Party (SP) president Sharad Pawar criticised prime minister (PM) Narendra Modi over rising fuel and cooking gas prices, alleging that the increases are being implemented gradually to avoid public backlash.
"He assured people of keeping inflation in check, but that is not happening. The ruling party will have to pay a political price for this at the right time," Mr Pawar told reporters in Baramati.
Referring to the latest increase, Mr Pawar said the hikes may appear modest individually but have steadily accumulated over time, putting growing pressure on household budgets.
Other Opposition parties echoed similar concerns, arguing that repeated increases in fuel prices are making it increasingly difficult for ordinary families to manage their monthly expenses.
Consumers are already feeling the impact. Many households have reportedly begun relying more on induction cooktops, rice cookers and other electric appliances to reduce dependence on LPG as cooking fuel costs continue to rise.
In March, higher commercial LPG cylinder prices had affected hotels and restaurants. The latest increase directly impacts domestic consumers and follows a period of heightened demand, during which concerns over possible supply disruptions reportedly led to panic bookings and temporary outages on LPG booking platforms.
While the political debate over fuel pricing continues, the government maintains that the revised LPG price remains significantly below the actual cost of supply and is necessary to ensure uninterrupted availability of cooking gas amid ongoing volatility in global energy markets.
