Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday defended the recent hike in LPG cylinder prices, stating that the move is essential to help oil marketing companies (OMCs) recover from substantial under-recoveries due to global price fluctuations. Despite the hike, he assured that affordability for consumers, especially Ujjwala beneficiaries, remains a key government priority.
Under the revised pricing, the cost of a 14.2 kg LPG cylinder has increased by ₹50. Regular consumers will now pay ₹853, while beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will receive the cylinder at a highly subsidised rate of ₹553 — ₹475 below the market price.
“This price increase will enable oil companies to offset their under-recoveries so that consumers continue to receive affordable fuel,” Puri said in a post on X. He added that the hike is a response to a 63% surge in international LPG prices — from $385/MT in July 2023 to $629/MT in February 2025 — which led to losses amounting to ₹41,338 crore for OMCs last year.
Highlighting India’s pricing policy in comparison with regional trends, Puri noted that while LPG prices in neighboring countries rose by over 10%, India’s LPG rates have dropped by about 19% over the same period, even after the current hike.
During a press conference, the minister clarified that the price revision would be reviewed every two to three weeks, keeping in mind global market trends and consumer welfare.
In addition to the LPG price hike, the government also raised excise duties on petrol and diesel by ₹2 per litre, effective Tuesday. While petrol’s excise duty will increase from ₹19.90 to ₹21.90 per litre, diesel’s will rise from ₹15.80 to ₹17.80 per litre. Puri clarified that this additional duty would not affect consumers directly and would instead help compensate OMCs for previous losses.
Despite rising excise duties, retail prices for petrol and diesel will remain unchanged, as per OMCs. The move comes as crude oil prices have dropped from over $70 to $63 per barrel, improving profit margins for oil companies.
Puri reaffirmed the government’s commitment to ensuring energy access and affordability for all, stating, “We have been providing affordable LPG cylinders to our customers before, and we will continue to do so.”
