Lok Sabha Question No. 3165 (UNSTARRED), answered on 2025-08-07
Subject: Price Hike of LPG
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri K Sudhakaran

## LOK SABHA UNSTARRED QUESTION NO. 3165 TO BE ANSWERED ON 7 AUGUST, 2025

## Price Hike of LPG

3165 Shri K Sudhakaran:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a)  the  reasons  for  LPG  price  hike  in  June  2025  despite  a  decline  in  global  crude  prices  and whether  the  Government  proposes  a  real-time  public  dashboard linking retail prices to international benchmarks and if so, the details thereof;

(b)  whether  the  Government  has  reviewed  audit  findings  including  those  from  the  CAG revealing that over 44% of Ujjwala beneficiaries in tribal and rural regions did not refill their first free LPG cylinder and if so, the details thereof along with the corrective steps taken in this regard;

(c) whether any third-party audits have been conducted since 2022 on subsidy leakage or ghost beneficiaries under DBT and PAHAL and if so, the details thereof;

(d) whether such reports would be made public;

(e) whether the Government has published a year-wise implementation roadmap for the National Green Hydrogen Mission and if so, the details thereof; and

(f)  whether  the  Government  has  examined  the  impact  of  high  distributor  margins  on  LPG affordability in remote areas and proposed any rationalisation framework and if so, the details thereof?

## ANSWER

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

(a): Government of India has not increased the price of domestic LPG in June 2025.

India imports about 60% of the domestic LPG consumed. Price of LPG in the country is linked to its price in the international market. While the average Saudi CP (international benchmark for LPG pricing) rose by 51% (from US$ 385/MT in July 2023 to US$ 582/MT in June 2025), the effective price for Pradhan Mantri Ujjwala Yojana (PMUY) consumers for domestic LPG was reduced by 38% (from Rs. 903 in August 2023 to Rs. 553 in July 2025).

The retail selling price of a 14.2 Kg domestic LPG cylinder is currently Rs. 853 in Delhi. After a targeted  subsidy  of  Rs.  300/cylinder  to  PMUY  consumers,  Government  is  providing  14.2  Kg LPG cylinders at an effective price of Rs.553 per cylinder (in Delhi). This is available to about 10.33 crore Ujjwala beneficiaries, across the country.

(b): Pradhan Mantri Ujjwala Yojana  (PMUY)  was  launched  in  May,  2016  with an objective to provide deposit free LPG connection to adult women from poor households across the country. The per capita consumption (in terms of 14.2 kg refills per annum) among PMUY consumers is 4.47 for FY 2024-25. As on 01.07.2025, only about 1.3% PMUY consumers have not  taken  any  refill  since  installation  of  their  connections  and  PMUY  beneficiaries  took  46.5 crore refills in 2024-25.

(c) & (d): Several studies have been done to assess the impact of DBTL-PAHAL scheme. A comprehensive  third-party  evaluation  was  conducted  by  Research  and  Development  Initiative (RDI).  The  study  found  that  more  than  90%  of  the  respondents  were  satisfied  with  subsidy reimbursement mechanism. The report recommends strengthening the subsidy payment infrastructure  and  grievance  redressal  systems,  along  with  improving  targeting  by  limiting subsidies  to  economically  weaker  sections.  It  also  highlights  the  need  for  sustained  safety awareness and expanded outreach through local language and mass media campaigns to ensure better adoption and safe usage of LPG. Based on these findings, steps have been taken to further improve the efficiency, transparency, and outreach of the PAHAL scheme.

Direct Benefit Transfer of LPG (DBTL) - PAHAL Scheme has been implemented since January 2015  for  transparent  and  effective  disbursal  of  subsidy  across  the  country.  Under  PAHAL Scheme, all domestic LPG cylinders are sold at non-subsidised price and applicable subsidy to LPG consumers is transferred directly into the bank account of the consumers.

Once the subsidy is credited, the consumer receives an SMS on their registered mobile number confirming the subsidy deposit. In the event of a failed transaction, the consumer is informed of the issue along with the necessary corrective action to be taken through SMS.

PAHAL has played a crucial role  in  identification  and  blocking  of  'ghost'  accounts,  multiple accounts, and inactive LPG connections, thereby helping curb the diversion of subsidised LPG for commercial use. As of 01.07.2025, 4.08 crore duplicate, fake/non-existent, and inactive LPG connections are blocked/suspended/deactivated.

(e): National Green Hydrogen Mission (NGHM) has been launched by Ministry of New and Renewable Energy (MNRE), Government of India, with an objective to make India a global hub of production, usage and export of green hydrogen and its derivatives.

NGHM under the MNRE has set a target to establish a Green Hydrogen production capacity of 5 Million Metric Tonnes (MMT) per annum by 2030.

Strategic  Interventions  for  Green  Hydrogen  Transition  (SIGHT)  is  a  key  component  of  the Mission which provides financial incentives for production of green hydrogen and electrolyser manufacturing.

(f): Currently Distributor Commission on domestic LPG is Rs. 73.08 per 14.2 Kg cylinder across the country including rural areas, which includes establishment cost, delivery charges and margins to distributors. Effective price of LPG cylinder for PMUY consumers, about 80 % of which  are  rural  consumers,  is  Rs.  553  (at  Delhi),  after  a  targeted  subsidy  of  Rs.  300/-  per cylinder.

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