LPG Price Hikes by ₹29 Amid West Asia Crisis; Govt Absorbs Leftover Cost
June 07, 2026 12:09 PM IST

LPG Price Hikes by ₹29 Amid West Asia Crisis; Govt Absorbs Leftover Cost

Ranit Kr. Singh , New Delhi – The government has increased the price of domestic LPG cylinders by ₹29 starting Sunday, citing a sharp 46 percent rise in international benchmarks triggered by the West Asia crisis and the closure of the Strait of Hormuz. Despite the hike, the Ministry of Petroleum and Natural Gas stated that Indian households continue to pay significantly less for cooking gas than consumers in neighbouring countries and advanced economies. Currently, a general consumer in Delhi pays ₹942 for a 14.2 kg cylinder, while Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries effectively pay ₹642 due to a ₹300 direct benefit transfer. The actual cost of supplying a domestic cylinder has crossed ₹1,600, meaning the government is absorbing an under-recovery burden of around ₹700 per cylinder to insulate households.

To mitigate supply constraints, the ministry revealed that domestic LPG production was ramped up by over 60 percent, and sourcing was expanded to suppliers outside the conflict zone, including the US, Canada, and Algeria. Supplies are being prioritized for households and essential institutions, while consumers are encouraged to shift to piped natural gas (PNG). Additionally, OTP-based delivery verification has been scaled up to 90 percent to prevent the illegal diversion of subsidized domestic gas into the commercial market, where a 19 kg commercial cylinder is priced at ₹3,113.50.

Reacting to the development, Karnataka Minister Yathindra Siddaramaiah said, "When crude oil prices were lower, the government didn't pass on the benefit to the common people. Now, when the international price has increased, it has been passed on to the people. This government has been very anti-people and is not looking in the interest of the people." Slamming the timing of the hike, Congress MP Vivek Tankha said, "This is causing a huge problem because it's making inflation skyrocket. It is an absolutely difficult time for the middle class. The government should have accepted it, explained it to the public, and taken them into confidence. Instead, they kept saying all the time that we are the Vishwaguru." Meanwhile, the ministry explained, "What the household does not bear the brunt of is the several hundred rupees a cylinder which the Government is bearing. Through a period of sharp international cost increases, that burden has been absorbed upstream rather than passed to the consumer."

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