India’s LPG Still Cheaper Than Neighbours, Govt Says Prices Lower Despite ₹60 Domestic Cylinder Hike

New Delhi: Even after the recent Rs 60 increase in domestic LPG prices, India continues to have cheaper cooking gas compared to several neighbouring countries, government sources said.

Officials noted that despite the price revision, LPG cylinders in India are still more affordable than in countries such as Pakistan, Sri Lanka and Nepal.

According to government data, the price of a 14.2 kg LPG cylinder for beneficiaries under the Pradhan Mantri Ujjwala Yojana in New Delhi is currently around Rs 613 as of March 2026.

In comparison, LPG prices are much higher in nearby countries. A similar cylinder costs about Rs 1,046 in Pakistan, around Rs 1,241 in Sri Lanka, and roughly Rs 1,207 in Nepal, according to the data.

Price Hike Linked To Global LPG Trends

Officials said the recent price increase should be viewed in the context of global energy price movements. India imports more than 60 percent of its LPG needs, which means domestic prices are influenced by international markets.

One of the key benchmarks for LPG pricing is the Saudi Contract Price, which determines global LPG trade rates.

Government sources pointed out that international LPG prices have fluctuated significantly over the last few years. The Saudi Contract Price increased from about USD 415 per metric tonne in 2020–21 to nearly USD 712 per metric tonne in 2022–23.

Government Absorbing A Large Part Of Costs

Despite the sharp rise in global prices during that period, the government ensured that the full burden was not passed on to Indian consumers.

To support this effort, the government compensated oil marketing companies around Rs 22,000 crore in the financial year 2022–23 for selling LPG at lower prices.

Officials said these companies also absorbed around Rs 40,000 crore in losses during 2024–25, while the government provided Rs 30,000 crore as compensation to maintain supply.

Cylinders Still Below Market Price

Government sources said domestic LPG prices are still lower than the actual market-linked cost.

In March 2026, the market price of a 14.2 kg cylinder in Delhi was estimated to be around Rs 987, but consumers were paying about Rs 853, which is nearly Rs 134 less.

Officials added that although calculations suggested a Rs 134 price increase, the government approved only a Rs 60 hike, absorbing the remaining cost to reduce the burden on households.