The Indian government has increased the price of cooking gas or LPG by Rs 50 per cylinder. The gas price has been increased for both Ujwalla and general category customers. The price of a 14.2-kg LPG cylinder will increase from Rs 803 to Rs 853 for general users and from Rs 503 to Rs 553 per 14.2 kg cylinder for users under the Ujwalla scheme.
The hike comes just a week after a reduction in commercial LPG rates. On April 1, oil marketing companies slashed the price of a 19-kg commercial LPG cylinder by Rs 41. India imports around 60% of the LPG it consumes, making domestic prices sensitive to international fluctuations. The average global price of LPG surged by 63%, from US$ 385 per metric tonne in July 2023 to US$ 629 per metric tonne in February 2025.
The government claims that the oil marketing companies like IOC, BPCL and HPCL have suffered losses exceeding Rs 43,000 crore due to the gap between the cost of procurement (including international gas prices and transport) and the selling price. It says this is done to support the companies to prevent further stress. International LPG prices have been volatile due to Ukraine-Russian war and Middle East tensions and the weak rupee against the dollar has made imports more expensive. It said that it is cutting down on subsidies and trying to balance fiscal responsibility by reducing the burden on the exchequer.
The government knows exactly what its decision would do to the middle-class and lower middle-class families. It would increase their monthly expenses. Yet it chooses to angst households and would never logically be applied to commercial consumers like large businesses, though they are in a better position to afford it. An increase of Rs 50 in cylinder prices might seem small, but for the common family, it’s a growing burden. Every extra rupee spent adds up, straining budgets already stretched thin. The impact is felt not just in the kitchen, but in the overall cost of living. It’s a challenge that affects daily life, making essentials harder to afford. The PMUY beneficiaries, though they still pay less than market rates, this hike affects millions of rural and low-income families who got access to LPG under the scheme. Many already struggle to afford frequent refills. Tea vendors, street food sellers, and home-based food businesses often use domestic LPG and will see a direct raise in operating costs.
The government sees this hike to strengthen the financial health of public sector oil companies and helps the government trim subsidy bills and focus spending elsewhere. No thought was given how household inflation could dampen consumer sentiment, especially in the wake of food price volatility. It would also discourage LPG usage in rural areas pushing people back to using biomass and firewood. It will not end at that. The government says LPG prices will be reviewed every 2-3 weeks thus opening the potential further hikes depending on market conditions and a way to fleece consumers.
Before this, the government raised the excise duty on petrol to Rs 13 per litre and that on diesel to Rs 10. This decision comes amid a period of declining global crude oil prices. The government claims that it aims to leverage this decline to bolster its revenue while paying lip service to the common man that they will not be burdened, because the common man has till date not seen no real benefit from falling crude oil prices reaching them.
The government must monitor such changes to mitigate adverse impacts on the most vulnerable sections of society because cooking gas is a daily need. By reducing taxes, offering targeted relief, and exploring long-term production and alternative fuel strategies, the government can better align its policies with public welfare, ensuring LPG remains affordable and accessible. Let the poor cook with happiness!
