LPG Cylinder Prices Increased by ₹50: What It Means for Indian Households
On April 7, 2025, the Indian government announced a ₹50 increase in the price of domestic Liquefied Petroleum Gas (LPG) cylinders, affecting both Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries and general consumers. This adjustment, effective from April 8, raises the cost of a 14.2-kg LPG cylinder to ₹553 for PMUY beneficiaries and ₹853 for non-PMUY consumers. India TV News+1The Economic Times+1
Understanding the LPG Price Hike
The LPG price revision impacts both subsidized and non-subsidized consumers. For PMUY beneficiaries, who previously paid ₹500 per cylinder, the new price is ₹550. Non-PMUY consumers will see an increase from ₹803 to ₹853 per cylinder.
This price adjustment comes after a period of stability, with the last revision occurring in March 2024, when prices were reduced by ₹100. Rediff+3www.ndtv.com+3The New Indian Express+3
Reasons Behind the Price Increase
Union Petroleum Minister Hardeep Singh Puri linked the increase to the necessity to recover losses incurred by oil marketing companies (OMCs), who have suffered substantial under-recoveries on account of selling LPG at less than market prices. The minister stressed that this action would be periodically reviewed, about every 2-3 weeks.
Impact on Indian Households
The ₹50 hike per cylinder amounts to a considerable hike in monthly bills for families dependent on LPG for cooking. For PMUY subscribers, the additional cost per year will be approximately ₹600, whereas non-PMUY consumers will incur an additional ₹600 a year considering a monthly usage of one cylinder.
This hike is particularly significant for low-income families under the PMUY scheme, who received free LPG connections to promote cleaner cooking fuels. The increased cost may pose challenges to the scheme’s objective of encouraging a shift from traditional cooking methods to LPG.
Broader Economic Context
In addition to the LPG price hike, the government has increased excise duties on petrol and diesel by ₹2 per litre each.However, this increase is not expected to affect retail prices, as it will be absorbed by OMCs. The additional revenue generated is intended to compensate for the ₹43,000 crore loss incurred by OMCs due to subsidized gas prices. India Today+1Business Today+1
Public and Political Reactions
The price hike has elicited varied reactions from the public and political spheres. Consumer advocacy groups have expressed concerns about the financial strain on households, especially those in lower-income brackets. Opposition parties have criticized the government for increasing the financial burden on citizens amid economic challenges.
Future Outlook
The government announced that LPG rates are to be reviewed every 15-30 days, with possible adjustments taking into account international oil prices and the domestic economic scenario. Consumers should remain aware of these adjustments and budget their household expenditure accordingly.
Conclusion
The recent hike of ₹50 in LPG cylinder prices shows the government trying to strike a balance between consumer interests and its fiscal obligations. While it’s trying to reduce the financial difficulties of OMCs, the hike adds yet another burden to Indian families, especially those which are in an economically vulnerable condition. As developments take place, it is more important than ever for policymakers to take into consideration steps that try to cushion consumers from the pinch while ensuring that the energy industry remains sustainable.
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