Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday confirmed a Rs 50 increase in the price of LPG cylinders across the country, while reassuring that the Ujjwala beneficiaries will continue receiving substantial subsidies to cushion the impact of global price volatility.
Under the new pricing structure, the 14.2 kg LPG cylinder now priced at Rs 1028 in the open market, will be available to Ujjwala Yojana beneficiaries at Rs 553, while regular consumers will pay Rs 853, after a Rs 175 reduction from the market rate.
Puri explained that the increase was a necessary step to help Oil Marketing Companies (OMCs) recover from under-recoveries due to selling below international market prices for months.
“Despite the 63% rise in international LPG benchmark prices (Saudi CP) from $385/MT in July 2023 to $629/MT in Feb 2025, LPG prices in India were reduced by up to 44%, leading to a loss of Rs 41,338 crore for OMCs,” Puri said in a post on X.
The minister noted that India’s LPG prices have declined by approximately 19% since October 2022, even as prices in neighboring countries have increased by 10% or more.
“Even with today’s hike, Ujjwala users are getting a Rs 475 subsidy per cylinder. This shows our government’s commitment to affordable fuel,” Puri added.
At a press conference, Puri clarified that while the LPG cylinder will now cost Rs 550 for Ujjwala users (up from Rs 500), the price for others will rise to Rs 853 (up from Rs 803). He emphasized that this price hike will be reviewed every 2-3 weeks depending on global market trends.
Excise Duty Hike on Petrol and Diesel
In a related development, the government has raised excise duties by Rs 2 per litre on both petrol and diesel, as per a notification by the Department of Revenue. Effective Tuesday:
- Petrol excise duty rises from Rs 19.90/litre to Rs 21.90/litre
- Diesel excise duty rises from Rs 15.80/litre to Rs 17.80/litre
Puri said the increase will not impact retail prices for consumers. Instead, the revenue generated will be used to compensate OMCs for their losses in supplying subsidised fuel.
“OMCs have assured the ministry that retail prices will remain unchanged, even as the excise duties go up,” he added.
Despite the excise hike, softening global crude oil prices, which dipped from over $70 to $63 per barrel, are expected to improve OMC margins and ease long-term financial pressures.
The developments reflect the government’s attempt to balance consumer affordability, fiscal prudence, and market sustainability in an increasingly volatile global energy landscape.