Poor families enrolled under the Pradhan Mantri Ujjwala Yojana (PMUY) are receiving 14.2 kg LPG cylinders at just ₹613 — roughly half the prevailing global market price of ₹1,200 per cylinder — as the Centre absorbs a subsidy of ₹587 per cylinder, a senior official at the Ministry of Petroleum and Natural Gas confirmed on 1 June. The subsidy shield has become especially significant amid a price spike driven by the Iran war and broader Middle East conflict.

Scale of the Subsidy Burden

The under-recovery of oil marketing companies (OMCs) has climbed sharply — from ₹41,338 crore in 2024-25 to an estimated ₹60,000 crore in 2025-26, according to official figures. To cushion domestic consumers, the government has already disbursed ₹30,000 crore in LPG subsidies during 2025-26. The remaining gap is being borne by the OMCs, raising concerns about their long-term financial health.

How India Compares With Neighbours

India's administered domestic LPG price remains among the lowest in the region. General households pay ₹913 per cylinder, while Ujjwala beneficiaries pay ₹613. By contrast, consumers in Sri Lanka pay ₹1,241, those in Nepal pay ₹1,207, and households in Pakistan pay ₹1,046 per cylinder for cooking gas.

The official drew a clear distinction between domestic and commercial pricing: 'The price of the commercial cylinder is revised every month because its cost is a direct pass-through of the international benchmark. The domestic cylinder is not. That is the protection,' the official observed.

Supply Situation Remains Stable

Despite global disruptions, domestic LPG supply is described as normal. Approximately 1.22 crore cylinders were delivered to households against bookings of around 1.21 crore cylinders over the last three days, according to the ministry's latest update. Online bookings have risen to about 99%, while deliveries using the Delivery Authentication Code (DAC) — linked to consumers' registered mobile numbers — have reached 96% to curb diversion.

Domestic LPG production from refineries has been ramped up to approximately 52 TMT per day to support consumption needs. All oil refineries are operating at high capacity with adequate crude inventories in place.

Government Advisory to Citizens

The Ministry of Petroleum and Natural Gas has urged citizens to avoid panic-buying petrol, diesel, and LPG, noting that adequate stocks are available at all retail outlets across the country. Sale of petrol and diesel reportedly surged by more than 30% in several districts during May 2025, prompting the advisory. Consumers are encouraged to use digital booking platforms, and to consider alternative fuels such as PNG and electric or induction cooktops where feasible.

The Centre has directed state governments to monitor district-wise fuel offtake patterns and intensify enforcement along major transportation and industrial corridors to prevent unauthorised procurement of diesel by commercial users, with prompt penal action mandated against violators.

With global energy markets remaining volatile, the sustainability of the current subsidy level will be closely watched in the months ahead.