Is India’s LPG Price the Lowest in the World Despite Imports?
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Synopsis
Discover how India's LPG pricing strategy has made cooking affordable for millions, even amid global challenges. Minister Hardeep Singh Puri reveals the country's efforts to keep prices low while ensuring energy access, emphasizing a significant transformation in the energy sector.
Key Takeaways
- India offers the lowest LPG prices globally.
- Over 10.33 crore families benefit from affordable cooking fuel.
- Government policies protect households from international price fluctuations.
- Public sector oil companies face financial challenges due to underrecoveries.
- Significant LPG infrastructure developments have occurred since 2014.
New Delhi, Aug 8 (NationPress) Minister of Petroleum and Natural Gas Hardeep Singh Puri emphasized on Friday that India offers LPG at the most affordable prices globally, even as an importer. This has allowed over 10.33 crore Ujjwala families to prepare meals for just Rs 6 per day, thanks to the economical fuel.
He stated, "Our energy sector's oil marketing companies have incurred significant losses to provide LPG to households at nearly half the price compared to neighboring countries." The minister noted that even when international LPG prices surged by 63 percent amidst global instability, Prime Minister Narendra Modi’s policies protected Indian families from these price hikes.
According to him, the public sector oil marketing companies have faced underrecoveries amounting to approximately Rs 41,000 crore during the financial year 2024-25 due to selling LPG below cost. A recent Cabinet decision has authorized a partial reimbursement of Rs 30,000 crore to these companies for their underrecoveries.
Chaired by PM Modi, the Union Cabinet has resolved that Rs 30,000 crore will be disbursed in twelve installments to public sector oil companies, which have kept LPG prices stable.
This compensation will be shared among the three oil marketing giants - Indian Oil, Bharat Petroleum, and Hindustan Petroleum - ensuring their financial stability, which is vital for maintaining energy availability, affordability, and sustainability for citizens in challenging geopolitical scenarios, the minister explained.
Puri remarked, "In the past 11 years of the Modi administration, we have witnessed a significant transformation in India’s energy landscape, focusing heavily on providing clean energy access to the public."
He revealed that approximately 56 lakh domestic LPG cylinders are delivered daily, with about 6 crore consumers visiting retail outlets each day across the nation. To bolster fuel availability in rural areas, around 86 percent of the total LPG distributors added over the last decade are rural-based.
The LPG pipeline infrastructure has also seen enhancements, with around 3,000 km of LPG pipelines constructed since 2014. The Kandla-Gorakhpur LPG pipeline stands as the world’s largest at 2,805 km, while construction of the Paradip-Haldia-Motihari pipeline, measuring 1,707 km, is currently underway.
Point of View
I acknowledge India's strategic approach to energy pricing, prioritizing affordability and accessibility for its citizens. The government's initiatives, particularly under PM Modi's leadership, reflect a commitment to transforming the energy landscape, especially for underprivileged families. While challenges persist, the focus on sustainable energy solutions is commendable and important for national stability.
NationPress
20/08/2025
Frequently Asked Questions
Why is LPG so affordable in India?
India's LPG prices are kept low due to government subsidies and strategic policies aimed at ensuring energy access for all, particularly for low-income families.
What are the implications of LPG price stability?
Stable LPG prices help protect consumers from international market fluctuations, ensuring that households can maintain affordable cooking options.
How many LPG cylinders are delivered daily in India?
Approximately 56 lakh domestic LPG cylinders are delivered every day across the country.
What role do public sector oil companies play?
Public sector oil companies are crucial in maintaining LPG supply and pricing stability, supporting the energy needs of Indian households.
What is the Kandla-Gorakhpur pipeline?
The Kandla-Gorakhpur LPG pipeline is the world’s largest, stretching over 2,805 km and significantly enhancing India's LPG infrastructure.
