Govt Defends Commercial LPG Hike; Domestic Gas Prices Held Steady Despite 44% Global Surge

NEW DELHI, April 1, 2026 — The Ministry of Petroleum and Natural Gas clarified today that the recent spike in commercial LPG prices is a direct result of a massive 44% surge in the Saudi Contract Price, which jumped from $542 per metric tonne in March to $780 per metric tonne for April.

In a statement released on X (formerly Twitter), the Ministry attributed this volatility to the ongoing West Asia crisis, noting that approximately 20–30% of global LPG supplies are currently bottlenecked in the Strait of Hormuz. While commercial rates—which apply to less than 10% of India’s total LPG consumption—are deregulated and market-determined, the government emphasized its commitment to shielding ordinary citizens from these international shocks.

Despite the global turmoil, domestic cooking gas prices remain unchanged at ₹913 for a 14.2 kg cylinder, while Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries continue to pay the subsidized rate of ₹613.

To maintain these stable prices, Oil Marketing Companies (OMCs) are currently absorbing an under-recovery of ₹380 per cylinder, with cumulative losses projected to hit ₹40,484 crore by the end of May.

The Ministry highlighted that India’s domestic LPG rates remain among the lowest globally, significantly cheaper than in neighboring countries like Pakistan (₹1,046), Sri Lanka (₹1,242), and Nepal (₹1,208). Reflecting on fiscal efforts, the government noted that last year it split a ₹60,000 crore loss equally with Oil PSUs to ensure that the high cost of international energy did not burden Indian households.