“LPG price hike India The Indian government has announced a significant price hike for liquefied petroleum gas (LPG) cylinders, with rates increasing by Rs 50 for all consumer categories. Union Petroleum Minister Hardeep Singh Puri confirmed on Monday that the price rise will affect both Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries and general consumers alike, with the new rates taking effect from April 8, 2025.
Impact on Different Consumer Segments
Following this revision, PMUY beneficiaries will now pay Rs 550 per cylinder, up from the previous rate of Rs 500. Meanwhile, non-subsidized consumers will see their cylinder costs rise from Rs 803 to Rs 853. This uniform increase across all consumer categories represents a notable shift in pricing strategy.
Minister Puri indicated that these revised prices would be subject to periodic review, “LPG price hike India typically conducted every 2-3 weeks, suggesting that further adjustments could be forthcoming based on market conditions and other economic factors.
Government Justification
The price hike comes as part of the government’s efforts to recover significant financial losses incurred by oil marketing companies (OMCs). According to Minister Puri, OMCs have suffered losses of approximately Rs 43,000 crore due to subsidized gas prices. This adjustment appears to be part of a broader strategy to balance consumer affordability with the financial health of the petroleum sector.
In addressing concerns about rising fuel costs, Puri clarified that the recent excise duty increases on petrol and diesel were not intended to burden consumers but rather to “LPG price hike India help offset these substantial losses faced by OMCs.
Market Context
“LPG price hike India Interestingly, this domestic LPG price increase follows close on the heels of a reduction in commercial LPG cylinder prices. Just days earlier, oil marketing companies had decreased the price of 19-kg commercial LPG cylinders by Rs 41, bringing the retail price in Delhi to Rs 1,762. This contrasting movement in commercial and domestic LPG pricing highlights the complex balancing act in India’s energy pricing policies.
“LPG price hike India The timing of this price hike is particularly challenging for households, “LPG price hike India coming during a period of rising economic uncertainty and increasing costs across various sectors. For the average Indian family, cooking gas represents an essential utility whose price directly impacts monthly budgets.
Consumer Impact
For the millions of PMUY beneficiaries, primarily women from underprivileged backgrounds who were provided connections under the government’s flagship scheme, this Rs 50 increase represents a 10% rise in their cooking fuel costs. For general consumers, the percentage increase is smaller but still significant in absolute terms.
“LPG price hike India The government continues to maintain that its pricing policies aim to strike a balance between consumer welfare and economic sustainability. However, as household expenses continue to rise across multiple categories, this latest increase in an essential commodity will likely prompt discussions about inflation management and subsidy policies in the coming weeks.
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