SRINAGAR: The Union Government has reported a sharp decline in the effective cost of domestic LPG cylinders for Pradhan Mantri Ujjwala Yojana beneficiaries, with prices dropping by nearly 39 per cent from Rs 903 in August 2023 to Rs 553 in November 2025. The data was shared in a written reply in the Lok Sabha, highlighting the Centre’s efforts to improve affordability and sustain LPG usage among low-income households.
According to the Ministry of Petroleum and Natural Gas, India imports about 60 per cent of its LPG requirement, and domestic prices generally track international rates. Despite a 21 per cent rise in the Saudi Contract Price between July 2023 and November 2025, domestic LPG prices were reduced by about 22 per cent during the same period.
To shield vulnerable households, the Government has steadily increased targeted subsidies for PMUY beneficiaries, currently fixed at Rs 300 per 14.2 kg cylinder for up to nine refills in FY 2025-26. The retail selling price of a domestic cylinder stands at Rs 853 in Delhi, bringing the effective cost for PMUY consumers to Rs 553 per refill.
Officials said the affordability push has driven higher LPG usage. Average annual consumption among PMUY households rose from 3.68 refills in FY 2021-22 to 4.47 in FY 2024-25. In Odisha, where the question was specifically raised, consumption increased from 3.02 to 4.03 refills per connection in the same period. Total LPG consumption by PMUY households in the State rose from 212.72 thousand metric tonnes in FY 2021-22 to 317.22 thousand metric tonnes in FY 2024-25.
To improve access in rural regions, the Government said 8,017 new LPG distributorships have been commissioned since April 2016, with 93 per cent serving rural areas. As of November 2025, Odisha has 966 distributorships. National LPG coverage has risen from 62 per cent in April 2016 to near saturation.
On comparative pricing, the Ministry stated that India’s effective domestic LPG price of Rs 553 for PMUY households remains substantially lower than rates in neighbouring countries, including Pakistan, Sri Lanka and Nepal.
The Government also outlined steps to diversify LPG sourcing, noting that public sector oil firms have finalised contracts for importing about 2.2 million tonnes of US-origin LPG for 2026, amounting to nearly 10 per cent of India’s annual import requirement.
The Centre confirmed that it has compensated Oil Marketing Companies for under-recoveries caused by shielding consumers from global price spikes. A one-time payment of Rs 22,000 crore was made in FY 2022-23, followed by an approval of Rs 30,000 crore to offset losses incurred during 2024-25.
