Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, reaffirmed the government’s commitment to providing affordable LPG cylinders to consumers, despite a significant increase in international LPG prices.
Under the revised pricing structure, a 14.2 kg LPG cylinder, which is currently priced at Rs 1028, will be available to Ujjwala beneficiaries at a subsidized rate of Rs 553, offering a discount of Rs 475 compared to the market price. Regular consumers will see a reduction of Rs 175, bringing the cost of the cylinder down to Rs 853.
Puri clarified that the price increase was essential for oil marketing companies (OMCs) to recover financial losses stemming from previous subsidized rates, which had been considerably lower than international market prices. He emphasized that the price adjustment would ensure LPG remains affordable for consumers while also supporting the sustainability of the domestic fuel market.
The Minister assured that the situation would be carefully monitored and reviewed in the coming days to align future price changes with global fluctuations while prioritizing consumer welfare.
In a post on X, Hardeep Puri stated, “We have always worked to provide affordable LPG to our customers and will continue to do so. The international benchmark for LPG, Saudi CP, saw a 63% price increase (from $385/MT in July 2023 to $629/MT in February 2025), while LPG prices in India were reduced by up to 44% during the same period. This resulted in a loss of Rs 41,338 crore for OMCs last year.”
He added, “Between October 2022 and April 2025, LPG prices in neighboring countries increased by over 10%, while even after today’s hike, LPG prices in India have decreased by around 19%. Despite the Rs 50 increase, Ujjwala beneficiaries will pay Rs 553 per cylinder—Rs 475 less than the market price—and regular consumers will pay Rs 853, which is Rs 175 less than the market price. This adjustment will allow oil companies to recover losses, ensuring continued affordability for consumers. We will review this hike periodically.”
Starting Tuesday, the price of LPG cylinders for both Ujjwala and non-Ujjwala beneficiaries will increase by Rs 50, Puri announced during a press conference on Monday.
“The price for PMUY beneficiaries will rise from Rs 500 to Rs 550, while the price for others will increase from Rs 803 to Rs 853,” the Minister stated. “This step will be reviewed periodically, every 2-3 weeks.”
Puri also addressed the imposition of additional excise duties on petrol and diesel, explaining that the measure aims to help oil marketing companies recover earlier losses.
“The Rs 2 excise duty increase, imposed by the finance ministry, will not be passed on to consumers. It will go into the general fund and be used to reimburse LPG losses incurred by the same oil marketing companies,” he added.
The Department of Revenue issued a notification stating that excise duties on diesel and petrol will increase by Rs 2 per litre, effective Tuesday. The excise duty on petrol will rise from Rs 19.90 per litre to Rs 21.90 per litre, and on diesel, it will increase from Rs 15.80 per litre to Rs 17.80 per litre.
Oil marketing companies have confirmed that retail prices for petrol and diesel will remain unchanged. The recent decline in crude prices from over $70 per barrel to $63 per barrel on Monday has improved margins for OMCs. This drop in crude prices may have prompted the government to adjust excise duties on petrol and diesel.
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