Why is the Price of LPG in India Lower than in Pakistan, Sri Lanka & Nepal?
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Synopsis
According to Petroleum Minister Hardeep Singh Puri, LPG prices in India are significantly lower than those in Pakistan, Sri Lanka, and Nepal. This article explores the reasons behind this price disparity and the government initiatives aimed at improving LPG accessibility.
Key Takeaways
- LPG prices in India are notably lower than in Pakistan, Sri Lanka, and Nepal.
- The effective price for PMUY beneficiaries is Rs 553.
- The government offers a subsidy of Rs 300 per cylinder for PMUY consumers.
- Consumption among PMUY beneficiaries has increased significantly.
- India's LPG coverage has reached near saturation.
New Delhi, Dec 11 (NationPress) The cost of LPG for consumers in India is significantly lower compared to its neighboring nations such as Pakistan, Sri Lanka, and Nepal, as revealed by Petroleum and Natural Gas Minister Hardeep Singh Puri during a parliamentary session on Thursday.
In a written response to a Lok Sabha inquiry, the minister presented data indicating that the effective price of a 14.2 kg LPG cylinder in India (Delhi) stood at Rs 553 for PMUY beneficiaries as of November 1 this year, whereas regular consumers faced a price of Rs 853. This is considerably lower than the prices in Pakistan (Lahore) at Rs 902.20 per cylinder, Sri Lanka (Colombo) at Rs 1,227.58, and Nepal (Kathmandu) at Rs 1,205.72.
India imports around 60% of its LPG needs, linking domestic prices to international market rates. The average Saudi CP (the global benchmark for LPG pricing) increased by 21% from US$ 385/MT in July 2023 to US$ 466/MT in November 2025. However, domestic LPG prices were lowered by approximately 22%, from Rs. 1103 to Rs. 853 within the same timeframe, the minister noted.
For the fiscal year 2025-26, the government aims to provide a targeted subsidy of Rs 300 per 14.2 kg cylinder for up to 9 refills for PMUY consumers. The effective price of domestic LPG for these beneficiaries has seen a significant reduction of about 39%, dropping from Rs 903 in August 2023 to Rs 553 in November 2025.
Due to various government initiatives aimed at making domestic LPG more accessible for PMUY consumers, the average consumption per connection has increased from 3.68 refills (FY 2021-22) to 4.47 refills in FY 2024-25.
To enhance LPG availability for cooking in rural and remote regions, oil marketing companies (OMCs) have established 8,017 distributorships from April 1, 2016, to October 31, 2025. Of these, 7,420 (approximately 93%) cater to rural areas. As of November 1 this year, India has a total of 25,587 LPG distributorships supported by 214 LPG bottling plants across the nation. Consequently, LPG coverage has improved from 62% in April 2016 to near full saturation, the minister mentioned.
Point of View
I recognize the importance of affordability in essential commodities like LPG. The Indian government’s initiatives to maintain lower LPG prices in comparison to neighboring countries reflect its commitment to improving the lives of its citizens, particularly through targeted subsidies for vulnerable populations.
NationPress
12/12/2025
Frequently Asked Questions
Why is LPG cheaper in India compared to other countries?
LPG prices in India are lower due to government subsidies and strategic pricing linked to international market rates.
What is the subsidy provided for PMUY consumers?
For PMUY consumers, the government offers a subsidy of Rs 300 per 14.2 kg cylinder for up to 9 refills.
How has LPG consumption changed for PMUY beneficiaries?
LPG consumption per connection for PMUY beneficiaries has increased from 3.68 refills to 4.47 refills annually.
What efforts are being made to improve LPG accessibility in rural areas?
The establishment of over 8,000 LPG distributorships has significantly improved LPG access, especially in rural regions.
What are the current LPG prices in neighboring countries?
As of now, LPG prices are Rs 902.20 in Pakistan, Rs 1,227.58 in Sri Lanka, and Rs 1,205.72 in Nepal.
