Indian households continue to buy cooking gas at a much cheaper price than in any other country despite a sharp rise in international energy prices, the Ministry of Petroleum and Natural Gas said on Sunday.
The ongoing US-Iran war in West Asia has taken a toll on the Indian economy, with the government hiking domestic LPG prices by Rs 29 per cylinder.
According to the ministry, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively pay Rs 642 for a 14.2 kg LPG cylinder after receiving a direct benefit transfer of Rs 300 on the first four refills each year. General consumers in Delhi currently pay Rs 942 per cylinder.
In comparison, LPG prices are higher in neighbouring countries such as Pakistan, Nepal, Bangladesh and Sri Lanka, and substantially costlier in countries including the United States, Australia and Canada.
A comparable cylinder costs around Rs 1,046 in Pakistan, Rs 1,207 in Nepal, Rs 1,225 in Bangladesh and Rs 1,241 in Sri Lanka. Prices are substantially higher in developed nations, at around Rs 1,755 in the United States, Rs 1,765 in Australia and Rs 2,411 in Canada.
The ministry said the cost of supplying a domestic LPG cylinder has risen to more than Rs 1,600 following a sharp increase in global prices. It attributed the rise to disruptions in the Strait of Hormuz, which pushed the Saudi Contract Price (CP) for LPG up by around 46 per cent between February and June 2026.
According to the ministry, the Saudi CP has risen sharply from about USD 543 per tonne in February to around USD 790 per tonne in June.
Despite the increase, consumers have been shielded from the full impact of higher costs, with under-recoveries estimated at about Rs 700 per domestic cylinder, the ministry said.
However, LPG prices in India remain among the lowest globally as an estimated Rs 60,000 crore is borne by public sector oil marketing companies and the exchequer, against which the government has approved Rs 30,000 crore as compensation.
The ministry said India has also increased domestic LPG production, diversified sourcing from countries including the United States, Canada and Algeria, and strengthened monitoring to prevent the diversion of subsidised cylinders.
