Union Petroleum Minister Hardeep Singh Puri on Friday, 10 July 2026, highlighted that domestic LPG cylinder prices remain below ₹950 for ordinary households and below ₹650 for Pradhan Mantri Ujjwala Yojana beneficiaries, even as the actual cost of a cylinder has climbed to ₹1,600 — attributing the gap to the policies of Prime Minister Narendra Modi.

Context

Puri posted in Hindi, stating: 'घरेलू LPG सिलेंडर की वास्तविक लागत ₹1,600 तक पहुँच चुकी थी' ('The actual cost of a domestic LPG cylinder had reached ₹1,600'). He added that under the 'visionary leadership' of Prime Minister Modi, consumers today still receive the cylinder for under ₹950, while Ujjwala families receive it for under ₹650. The post underscores a subsidy gap of over ₹950 per cylinder for Ujjwala households — a significant fiscal commitment by the central government.

The figures illustrate the scale of the price support being extended at a time when global crude and LPG commodity prices remain elevated. The minister's framing positions the price differential as a deliberate policy choice rather than a market outcome.

Policy Backdrop

Pradhan Mantri Ujjwala Yojana (PMUY), launched in May 2016, was designed to provide free LPG connections to women from below-poverty-line households, accelerating the shift away from biomass and solid fuels toward cleaner cooking energy. The scheme is widely regarded as one of the flagship welfare initiatives of the Modi government's energy access agenda.

Alongside PMUY, the PAHAL Direct Benefit Transfer (DBT) scheme — rolled out nationally from 2015 after a 2013 pilot — routes LPG subsidies directly into beneficiaries' bank accounts. This architecture allows the government to calibrate subsidy levels without altering the pump price across all consumer categories simultaneously. India's approach to LPG pricing has consistently sought to balance household affordability, fiscal prudence, and energy security against the backdrop of volatile international commodity markets.

Stakeholders and Impact

The two primary beneficiary groups are general domestic LPG consumers and Ujjwala households — the latter being among India's most economically vulnerable families. With the actual cost at ₹1,600, the effective subsidy per cylinder for an Ujjwala family exceeds ₹950, representing a direct transfer of purchasing power to low-income women who are the primary cooks in these households.

Oil marketing companies — which procure, bottle, and distribute LPG — absorb the difference between market cost and consumer price, with the government compensating them through budget allocations. The scale of this support has direct implications for the Union Budget's subsidy outgo and the financial health of state-run energy firms.

What's Next

Attention will now turn to Union Budget subsidy allocations for FY27 and any quarterly pricing reviews by oil marketing companies, which will determine whether current consumer prices are sustainable as global energy markets evolve. Any upward revision in LPG prices — or a rollback of Ujjwala-specific support — would directly affect millions of households currently benefiting from the subsidised rate.

The minister's public communication on LPG pricing signals that the government intends to keep household energy affordability front and centre as a political and policy priority ahead of the budget cycle.