Lok Sabha Question No. 6392 (UNSTARRED), answered on 2026-04-02
Subject: Impact of Middle East Conflict on LPG Prices
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri K Radhakrishnan

## LOK SABHA UNSTARRED QUESTION NO. 6392 TO BE ANSWERED ON 02 APRIL, 2026

## Impact of Middle East Conflict on LPG Prices

## 6392.  SHRI K RADHAKRISHNAN:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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

- (a)  whether  the  Government  has  taken  note  of  the  recent  increase  in  domestic  LPG  cylinder prices  in  the  country  following  the  escalation  of  conflict  in  the  Middle  East  and  the  resulting volatility in global energy markets and if so, the details thereof;
- (b) whether the Government has assessed the impact of the ongoing conflict in the Middle East on India's LPG imports and domestic LPG prices and if so, the details thereof;
- (c)  the  steps  taken  by  the  Government  to  address  the  emerging  energy  crisis  and  to  ensure stability in LPG prices in the country; and
- (d)  the  measures  taken  by  the  Government  to  protect  poor  and  middle-class  households, including  beneficiaries  of  the  Pradhan  Mantri  Ujjwala  Yojana  from  the  burden  of  rising  LPG prices?

## 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) to (d): Prices of LPG in the country are linked to its prices in the international market. Government continues to modulate the effective price to consumer for domestic LPG.

Before the outbreak of conflict in the Middle East in February 2026,  India imported about 60 percent of its LPG consumption, out of which about 90 percent was transiting through the Strait of Hormuz. The Government have undertaken a series of proactive measures to ensure stability in LPG supplies post the outbreak of the conflict. These include rapid increase in production of LPG by 40%, prioritization  of  domestic  LPG  consumption,  diversification  of  import  sources, dynamic stock management, and inter-regional allocation to address localized shortages.

While the average Saudi CP (international benchmark for LPG pricing) rose by 41% (from US$ 385/MT in July 2023 to US$ 542/MT in February 2026) along with exchange rate, the prices of domestic LPG were reduced by about 17% (from Rs. 1103 in August 2023 to Rs. 913 in March 2026). For PMUY consumers, effective price for domestic LPG has been reduced by about 32% (from Rs. 903 in August 2023 to Rs. 613 in March 2026).

The Retail Selling Price (RSP) of a 14.2 Kg domestic LPG cylinder is currently Rs. 913 in Delhi. After  a  targeted  subsidy  of  Rs.  300/cylinder  to  PMUY  consumers,  Government  of  India  is providing 14.2 Kg LPG cylinders at an effective price of Rs. 613 per cylinder (in Delhi) to all eligible PMUY beneficiaries.

Government  has  paid  a  compensation  of  Rs.  22,000  crore  to  OMCs  in  FY  2022-23  and  has approved another compensation of Rs. 30,000 crore in FY 2025-26 for under-recoveries on sale of domestic LPG.

Effective  price  of  domestic  LPG  cylinder  in  neighbouring  countries  as  on  01.03.2026  is  as below:

| Country   | Domestic LPG (Rs./14.2 kg.cyl.)   |
|-----------|-----------------------------------|
| India     | 613.00#*                          |
| Pakistan  | 1046.34                           |
| Sri Lanka | 1241.67                           |
| Nepal     | 1207.81                           |

#Effective 7th March'2026

*Effective cost to PMUY beneficiaries in Delhi, effective cost is Rs. 913 for non-PMUY consumers Source: Petroleum Planning and Analysis Cell (PPAC)

Further, to ensure adequate LPG storage and supply chain resilience, OMCs have been directed to plan for LPG stocks equivalent to at least 30 days of national consumption (in terms of stock levels and not storage capacity).

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