Union Minister Hardeep Singh Puri on Monday announced that the price of LPG cylinders—both for Ujjwala scheme beneficiaries and non-beneficiaries—will be increased by ₹50 starting Tuesday.
New Prices (Effective Tuesday):
- PM Ujjwala Yojana (PMUY) beneficiaries:
₹550 per cylinder (up from ₹500) - Non-Ujjwala consumers:
₹853 per cylinder (up from ₹803)
“The price per cylinder of LPG will increase by ₹50. This is a step which we will review as we go along,”
– Hardeep Puri, Minister for Petroleum & Natural Gas
Excise Duty Hike on Petrol and Diesel:
In addition to the LPG price hike, the central government has also raised excise duties on petrol and diesel by ₹2 per litre, effective Tuesday.
🔹 Petrol:
From ₹19.90 ➜ ₹21.90/litre
🔹 Diesel:
From ₹15.80 ➜ ₹17.80/litre
However, retail fuel prices will remain unchanged despite the hike. This is because the additional revenue generated will be used to compensate oil marketing companies (OMCs) for prior losses, as clarified by Minister Puri.
“It will not be passed on to the consumer. It will come into the general kitty and will be utilized for reimbursing the LPG losses of the same (oil marketing) company,” he said.
Background & Context:
The move comes amidst a drop in international crude oil prices, which have fallen from USD 70 to USD 63 per barrel recently. The improved margins for OMCs may have encouraged the government to introduce the hike without burdening consumers at the pump.
The government also noted that LPG and fuel price reviews occur every 2–3 weeks, indicating that future adjustments may be made based on global and domestic conditions.
This dual move—raising LPG prices and excise duties—signals a balancing act between fiscal consolidation and energy affordability, especially as the country prepares for upcoming elections and global oil markets remain volatile.