Domestic LPG Supply Cost Crosses Rs 1,600 Per Cylinder, Says Petroleum Ministry

The Petroleum Ministry has stated that the expenditure involved in supplying a standard 14.2 kg domestic LPG cylinder has now surpassed Rs 1,600 amid continued instability in West Asia.

Despite the latest Rs 29 increase in retail prices, oil marketing companies still absorb losses of nearly Rs 700 on every domestic LPG cylinder sold to households.

Rising international energy costs have pushed commercial LPG prices significantly higher.

In Delhi, suppliers now sell a 19 kg commercial LPG cylinder used by hotels and restaurants for Rs 3,113.50 after implementing five price hikes during the ongoing crisis.

While domestic consumers pay around Rs 66 per kg, the actual cost linked to imports remains considerably higher.

Since nearly 54 per cent of India’s LPG consumption depends on supplies passing through the strait, the disruption posed a major challenge to energy security.

Officials said India succeeded in maintaining a steady flow of energy cargoes despite the disruptions.

Indian-flagged vessels continued transporting crude oil and LPG shipments to domestic ports, preventing shortages across the country.

To reduce dependence on imports, domestic LPG output was increased by more than 60 per cent. It rose from about 32 thousand metric tonnes to nearly 52 thousand metric tonnes.

India also diversified its procurement strategy by sourcing LPG from additional markets, including the United States, Canada and Algeria.

The government strengthened enforcement mechanisms to curb the diversion of subsidised LPG into commercial channels. These measures include the wider use of OTP-based delivery verification.

According to the Ministry, cumulative losses on domestic LPG sales reached Rs 60,000 crore. The sector recorded the losses by the close of the previous financial year.

To ease the burden on oil marketing companies, the Union Cabinet approved compensation worth Rs 30,000 crore.

Beneficiaries of the Ujjwala scheme continue to receive direct support of Rs 300 per cylinder. More than 10.58 crore households across the country benefit from this assistance.

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