LPG Prices Rise Amid Iran War, Yet India's Cooking Gas Costs Remain Among Lowest

Last Updated:June 07, 2026, 08:58 IST

The PMUY price for the first four cylinders at Rs 642 is about 60% off the international price of an LPG cylinder, while the non-PMUY price is Rs 942.

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. However, Indian household consumers continue to buy cooking gas at a much cheaper price than in any other country.

According to the Ministry of Petroleum and Natural Gas, a single beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) is paying Rs 642 for a 14.2 kg cylinder, and a general customer in Delhi is paying Rs 942, against a cost to supply that has now risen to over Rs 1,600.

The Iran conflict has rattled the global economy, sending crude oil and natural gas prices soaring worldwide. However, the government continues to modulate the effective price of LPG, despite the prices being linked to the corresponding prices in the international market.

How Much Are Indians Paying For LPG?

Following the latest LPG price hike, the price of a standard 14.2-kg domestic LPG cylinder in Delhi has increased to Rs 942 from Rs 913. A PMUY beneficiary will additionally receive the direct benefit transfer of Rs 300 a cylinder on the first four refills each year, effectively reducing the price to Rs 642.

Even a non-PMUY household would pay about Rs 700 below the market-linked cost of the cylinder, as per the Petroleum Ministry. The recent price hike came amid continued pressure on Oil Marketing Companies (OMCs) due to elevated crude oil prices triggered by the West Asia crisis.

How Much Are Other Countries Paying?

Global energy prices were hiked by the effective closure of the Strait of Hormuz, which supplies one-fifth of the world’s crude and gas needs. However, LPG prices in India remain among the lowest as an estimated Rs 60,000 crore is borne by the public sector marketing companies and the exchequer, against which the government has approved Rs 30,000 crore as compensation.

Almost all Indian consumers have received LPG at prices far below international market levels over the last several years, and Indian households continue to pay less than households in Pakistan, Nepal, Bangladesh and Sri Lanka, and far less than in the United States, Australia and Canada.

The effective PMUY price for the first four cylinders at Rs 642 is about 60% off the international price of an LPG cylinder, while the non-PMUY price of Rs 942 is about 45% off the international price, as per the government release.

About the Author

Aveek Banerjee

Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master's in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in int...Read More

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