Prices of commercial LPG - the one used in hotels and restaurants - as well as 5-kg market-priced LPG cylinders were on Monday hiked in line with global benchmarks, but rates of cooking gas used in household kitchens were kept unchanged.
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NEW DELHI — Prices of commercial LPG - the one used in hotels and restaurants - as well as 5-kg market-priced LPG cylinders were on Monday hiked in line with global benchmarks, but rates of cooking gas used in household kitchens were kept unchanged.
The price of commercial LPG was hiked by INR 42 to INR 3,113.50 per 19-kg cylinder from INR 3,071.50 in Delhi, industry sources said.
The latest increase follows a sharp INR 993 hike implemented on May 1, taking commercial LPG prices to their highest-ever levels.
Prices of 5-kg free-trade LPG (FTL) cylinders were also increased by INR 11 to INR 821.50 per cylinder.
Household consumers were spared any increase, with the price of the 14.2-kg domestic LPG cylinder remaining unchanged at INR 913 since early March, when rates were increased by INR 60 per bottle.
The revisions are part of the monthly price review undertaken by state-owned oil marketing companies.
Prices vary from state to state depending on the incidence of local taxes, such as VAT.
While commercial LPG prices have climbed to record highs, household cooking gas rates have remained unchanged despite a sharp rise in import costs, underscoring the government's efforts to shield consumers from global energy volatility, government sources said.
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The cost of supplying a 14.2-kg domestic LPG cylinder has risen by about two-fifths in recent months, driven largely by a surge in international benchmark prices. Yet retail prices for households have remained frozen.
For beneficiaries of the government's flagship Ujjwala scheme, the gap is even wider. A domestic LPG cylinder that costs roughly INR 1,200 to supply is available to Ujjwala consumers at an effective price of INR 613 after the INR 300-per-cylinder direct benefit transfer subsidy, according to government estimates.
Despite the rise in global prices, India's household LPG rates remain among the lowest in the region, according to government sources. Both subsidised and non-subsidised domestic cylinders are priced below comparable cooking gas cylinders in neighbouring countries, although cylinder sizes vary across markets.
The protection comes at a cost. State-owned fuel retailers incurred an under-recovery of INR 41,338 crore on domestic LPG sales in 2024-25. Following the spike in international prices, the under-recovery for 2025-26 is estimated at around INR 60,000 crore, according to oil ministry projections.
To offset part of the burden, the government has approved a compensation of INR 30,000 crore to state-owned oil marketing companies in the current fiscal year.
The support framework is tied to the Pradhan Mantri Ujjwala Yojana, under which more than 100 million households have received LPG connections since 2016, alongside a capped subsidy of INR 300 per cylinder.
Commercial LPG, by contrast, is priced on a market-linked basis and revised every month in line with international benchmarks. Domestic LPG rates are administered and insulated from immediate global price swings - a policy that has helped protect household budgets even as energy costs have surged.