LPG Cylinder Prices Hiked by ₹50: A Fresh Jolt to Household Budgets
In a move that directly affects millions of households across India, the price of domestic LPG cylinders has been increased by ₹50, effective April 8, 2025. The announcement, made by Union Petroleum Minister Hardeep Singh Puri, comes as a response to the mounting financial pressure faced by Oil Marketing Companies (OMCs), who have been incurring heavy losses due to rising global fuel prices.
Under the revised rates, beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will now pay ₹550 per 14.2 kg cylinder, up from ₹500. For non-PMUY consumers, the price has gone up from ₹803 to ₹853. This hike follows a brief period of price stability and comes close on the heels of a ₹41 reduction in commercial cylinder prices, announced just a week earlier on April 1, 2025.
According to Minister Puri, the decision was necessary to offset under-recoveries by the OMCs, which had reached an alarming ₹43,000 crore. “We understand the burden on consumers, but this increase is essential for the sustainability of fuel supply,” he said during a press briefing. He also clarified that the central government would continue to monitor fuel prices closely and make periodic adjustments based on global trends and market stability.
The hike is part of a broader policy shift that includes a ₹2 per litre increase in excise duty on petrol and diesel. However, authorities insist that this tax hike will not immediately impact the retail selling price of fuel, as the government aims to absorb the costs temporarily to support public consumption.
Global trends have played a major role in the current scenario. International LPG prices have seen a significant surge, jumping from $415 per metric ton to over $700 per metric ton in recent months. This sharp rise has made it increasingly difficult for Indian fuel companies to maintain previous pricing levels without substantial losses.
State-level pricing also reflects the new increase. For example, in Uttar Pradesh, the revised price for a domestic LPG cylinder is now ₹937.50, marking a ₹15 rise from March’s rate. Similar trends are expected across other states, depending on local taxes and logistics costs.
The government has assured the public that it will continue to subsidize LPG for PMUY beneficiaries to ease the burden on low-income households. However, the hike is still expected to affect household expenses, especially among middle-class families who are already grappling with inflation and rising costs of essential commodities.
Moving forward, the Ministry of Petroleum plans to introduce a bi-weekly review system for LPG prices to better align domestic rates with global market trends. While this may help avoid sudden steep increases, it also means that consumers will need to remain prepared for frequent fluctuations.
In conclusion, the ₹50 price hike in LPG cylinders is a stark reminder of the complex balancing act between economic sustainability and consumer welfare. As fuel prices continue to remain volatile worldwide, both the government and the public will need to adapt to a new era of dynamic energy pricing.
