India has raised domestic LPG cylinder prices by ₹29 per unit with effect from 7 June, lifting the cost of a 14.2-kg cooking gas cylinder to ₹942 in Delhi and ₹968 in Kolkata, the second upward revision in under three months as oil marketing companies continue to absorb steep losses on every cylinder sold.
The latest revision follows a ₹60-per-cylinder increase on 7 March, meaning household cooking gas has risen by ₹89 in total since the start of that month. Despite the back-to-back increases, the government maintains that consumers across categories remain heavily subsidised relative to the actual cost of supply.
City-wise LPG cylinder prices today: Delhi, Mumbai, Kolkata, Hyderabad and Bengaluru rates
The revised prices for a 14.2-kg domestic LPG cylinder across major cities, effective 7 June, are as follows:
CHECK LPG PRICES IN YOUR CITY TODAY
Prices vary across cities on account of differences in local taxes, transportation costs, and state levies applied on top of the base rate set by oil marketing companies.
Government says LPG consumers still receive ₹700 to ₹1,000 in indirect subsidy per cylinder
At an inter-ministerial press briefing on Monday, Additional Secretary in the Ministry of Petroleum and Natural Gas, Praveen Mal Khanooja, argued that the ₹29 revision should be viewed in the context of the substantial indirect subsidy that consumers continue to receive.
"Whether I'm a Ujjwala customer or a non-Ujjwala customer, I'm getting cylinder which should have costed ₹1,600, at ₹942, even if I'm a non-Ujjwala customer. Now in that case, that is also an indirect subsidy to the customer. Now over and above that, Ujjwala customers get ₹300 more. So overall, if you see, they are getting ₹1,000. The non-Ujjwala are also getting ₹700 a cylinder," Khanooja said.
The effective cost of a 14.2-kg cylinder, benchmarked against Saudi Contract Price, currently stands at over ₹1,600, making the gap between the market rate and the consumer price a significant one by any measure.
Oil marketing companies face under-recovery of ₹700 per LPG cylinder even after the June price hike
The ₹29 revision has done little to close the financial gap facing India's oil marketing companies. Khanooja confirmed that OMC under-recovery on domestic LPG currently stands at around ₹700 per 14.2-kg cylinder, a level comparable to that which prompted the central government to compensate OMCs with ₹52,000 crore across FY23 and FY24.
The ministry framed the ₹29 increase as a minimal burden on households. Khanooja calculated it as "a very minor hike" amounting to roughly ₹1 per day for a family consuming 12 cylinders a year, or 20 paisa per day per household member.
Ujjwala scheme beneficiaries receive ₹300 additional subsidy per cylinder for first four refills annually
Under the Pradhan Mantri Ujjwala Yojana, eligible consumers receive a direct subsidy of ₹300 per cylinder on the first four refills each year, reflecting the government's assessment that Ujjwala households use an average of four to five cylinders annually.
This benefit is layered on top of the indirect subsidy already embedded in the below-market consumer price, taking the total effective relief for Ujjwala beneficiaries to approximately ₹1,000 per cylinder.
Domestic LPG production hits record levels even as West Asia supply pressures persist
On the supply side, Khanooja said crude oil, LPG, and natural gas supplies remain stable despite ongoing tensions in West Asia. Domestic LPG production has been scaled up significantly, reaching 53 TMT per day on World LPG Day, a figure roughly 60 per cent higher than pre-crisis levels. Backlogs at distributorships have been brought down to under four days, online sender bookings stand at 99 per cent, and delivery authentication has reached 96 per cent.
In the four days leading up to the briefing, sender bookings averaged 42 lakh per day while deliveries reached 44 lakh per day. Commercial LPG sales have also recovered to around 6 TMT per month, equivalent to 70 to 75 per cent of pre-crisis consumption levels.
Petrol and diesel under-recoveries add to OMC financial strain as enforcement drives intensify
The LPG losses sit alongside wider under-recoveries on transport fuels. Khanooja disclosed that oil marketing companies are currently absorbing shortfalls of ₹30 per litre on diesel and ₹6 per litre on petrol, translating to a combined industry loss of ₹600 to ₹700 crore per day.
Enforcement activity has ramped up alongside the supply push. In a four-day window, authorities conducted 1,800 inspections at petrol and diesel outlets and 890 checks at LPG distributorships, with FIRs and financial penalties imposed where violations were found.
PNG connections cross 1.69 crore mark as E85 flex-fuel launches at 50 pumps nationwide
The briefing also covered broader energy developments. Piped natural gas connections have crossed 1.69 crore, with 9.16 lakh new connections added since March 2026. E85 flex-fuel, launched on 5 June for vehicles with compatible engines, is currently available at 50 pumps nationwide and is expected to be distributed across 5,000 pumps by December 2027. It is priced ₹20 per litre below E20, positioning it as a cheaper alternative for eligible vehicle owners.
Refineries are running at optimum capacity and have supplied 2,760 MT of C3/C4 molecules and 1,660 MT of butyl electrolyte since 1 June for use in chemicals and pharmaceutical manufacturing.
Stay updated with the latest Trending, India , World and US news.
