New Delhi: In a move that will directly affect millions of Indian households, the Union Government has approved a ₹50 hike in the price of domestic liquefied petroleum gas (LPG) cylinders. The new pricing, effective from April 8, will apply uniformly to 14.2 kg cylinders, covering both subsidised and non-subsidised categories, including those availed by beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY).
With this increase, the cost for PMUY consumers has risen from ₹500 to ₹550 per cylinder, while other domestic users will now pay ₹853, up from ₹803. The announcement came from Petroleum and Natural Gas Minister Hardeep Singh Puri, who stated that LPG prices are reviewed on a periodic basis, typically every two to three weeks, in response to international energy market conditions.
This hike marks the first increase in domestic LPG prices since August 2024, when the rates were last adjusted. It follows close on the heels of a recent ₹41 cut in commercial LPG cylinder prices on April 1, a reduction that brought the cost of a 19-kg commercial cylinder in Delhi to ₹1,762.
Price Hike Linked to Global Market Surge
India relies heavily on imports to meet its LPG demands, with nearly 60% of consumption sourced from international suppliers. This dependency makes domestic prices susceptible to volatility in the global energy market. According to official data, the average international LPG price jumped 63% in less than a year — from US$ 385 per metric tonne in July 2023 to US$ 629 per metric tonne in February 2025.
These sharp global increases have compelled oil marketing companies to pass on a part of the burden to domestic consumers. The government had previously cushioned the impact on vulnerable households by introducing subsidies, especially under schemes like PMUY. However, with crude oil prices and international LPG benchmarks continuing to climb, the latest hike reflects market-linked adjustments, albeit unwelcome for consumers already struggling with inflationary pressures.
Impact on PMUY Beneficiaries and Overall LPG Usage
The Pradhan Mantri Ujjwala Yojana, a flagship scheme aimed at providing clean cooking fuel to economically weaker sections, has over the years become the backbone of India’s domestic LPG network. As of March 1, 2025, the number of PMUY beneficiaries stood at 10.33 crore, forming a substantial portion of the 32.94 crore active LPG consumers across the country.
While the price for PMUY users has now risen to ₹550, it’s still significantly below market rates due to the government’s subsidy framework. According to Minister of State for Petroleum and Natural Gas Suresh Gopi, the average effective price for PMUY beneficiaries dropped by 44% in the past year — from ₹903 in August 2023 to ₹503 in February 2025 — thanks to increased government support.
Despite this, the latest increase has raised concerns about affordability and the scheme’s long-term impact. Experts argue that frequent price hikes, even if partially subsidised, may disincentivise regular refilling among low-income households — potentially pushing them back toward polluting traditional fuels.
Government’s Justification and Policy Stand
The central government maintains that the LPG price hike is a direct consequence of international energy trends and that the subsidy system continues to protect economically weaker segments. Minister Hardeep Singh Puri emphasised that the revision process is transparent and data-driven, occurring every few weeks in sync with global movements in energy prices.
Officials also point out that the government has not entirely withdrawn fiscal support. On the contrary, subsidies under PMUY and other welfare schemes remain active, absorbing a significant portion of the rising costs to shield vulnerable users. However, there is a growing chorus demanding that the government enhance subsidy amounts to maintain affordability in the face of sustained global energy price pressures.
Public Reaction and Opposition Response
The decision has sparked criticism from several opposition parties, who argue that the timing of the hike is problematic, especially as households are grappling with rising food prices and stagnating wages. Leaders from major parties, including the Indian National Congress and regional political outfits, have called the hike anti-poor and insensitive to the needs of common citizens.
On the ground, public sentiment mirrors this discontent. In both urban and rural areas, consumers have expressed frustration, especially among middle-class and lower-income families who rely heavily on LPG for daily cooking. Many families are already managing budgets stretched thin by electricity and education costs, and now fear that cooking gas might become a luxury if prices continue to rise unchecked.
Street-level interviews conducted in Delhi, Lucknow, and Kolkata revealed a growing sense of helplessness, with several homemakers and small business owners urging the government to roll back the hike or increase the frequency and scope of subsidies.
Experts Weigh In
Energy analysts believe the government is walking a tightrope between market realism and public affordability. According to analysts at the Indian Institute of Energy Economics, the move, while economically necessary, may carry political risks ahead of state and general elections. They suggest that instead of across-the-board hikes, a tiered pricing structure based on income levels could offer a more sustainable and fair solution.
Additionally, some suggest exploring alternate fuels and increasing the domestic production of LPG as long-term strategic measures to reduce dependence on imports. With India’s energy mix still heavily skewed toward imports, vulnerability to global price swings will continue unless structural reforms are introduced.
Outlook for Future Revisions
As the government adheres to a policy of periodic price evaluations, the next few months will be critical in determining whether this hike is an isolated adjustment or part of a broader upward trend. Global crude prices, exchange rates, and geopolitical developments — especially in oil-producing regions — will influence future decisions.
For now, consumers are bracing themselves, hoping that the government will take a calibrated approach moving forward. If international prices continue to soar, further hikes may become inevitable, unless the subsidy cushion is expanded to prevent deepening the economic strain on households.
The ₹50 hike in domestic LPG prices effective April 8 underscores the delicate balance the government must strike between fiscal sustainability and public welfare. While the move reflects the reality of rising global energy prices, its timing and magnitude have sparked criticism and concern. With millions relying on subsidised LPG for clean cooking, the challenge ahead lies in ensuring accessibility without eroding affordability, especially for the economically vulnerable. As energy markets remain volatile, domestic consumers face an uncertain future marked by periodic fluctuations and policy recalibrations.
