The Indian government has justified a recent hike in liquefied petroleum gas (LPG) prices, citing ongoing losses for state-run oil companies and lower prices compared to neighboring countries.
Domestic LPG prices have increased by ₹89 since the war in West Asia broke out, with the latest hike taking cooking gas prices to their highest level since August 30, 2023.
The government subsidises cooking gas by ₹300 per 14.2kg cylinder for up to nine refills a year to nearly 100 million poor households under the Prime Minister Ujjwala Yojana (PMUY).
However, it remains unclear whether the government has officially reduced the number of subsidized cylinders available to poor households from nine to four annually in the current financial year.
According to the petroleum ministry, Indian households continue to buy cooking gas at prices lower than those prevailing in neighboring countries and advanced economies, with the equivalent price of a 14.2kg LPG cylinder being ₹1,046 in Pakistan, ₹1,225 in Bangladesh, and ₹1,755 in the US.
