Lok Sabha Question No. 6411 (UNSTARRED), answered on 2026-04-02
Subject: Impact of Global Energy Price Rise on LPG Consumers
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Mrs Ruchi Vira

## LOK SABHA UNSTARRED QUESTION NO. 6411 TO BE ANSWERED ON 02 APRIL, 2026

## Impact of Global Energy Price Rise on LPG Consumers

† 6411. MRS RUCHI VIRA:

## 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 cognizance of reports indicating that the price of domestic Liquefied Petroleum Gas (LPG) cylinders has been increased by approximately Rs. 60 across the country  amid  rising  global  energy  prices  and  supply  uncertainties  arising  from  the  ongoing conflict in West Asia;
- (b) if so, the details of the assessment made by the Government regarding the potential impact of geopolitical  tensions  on  India's  dependence  on  LPG  imports,  domestic  cooking  gas  prices, transportation fuel costs and the overall stability of petroleum product supply in the country; and
- (c) the measures proposed by the Government to protect domestic consumers from volatility in global  energy  markets,  including  diversification  of  LPG  import  sources,  strengthening  of strategic reserves?

## 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 (c): 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).

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)

To boost domestic production of LPG for current usage, the Government, on 9th March 2026, issued directions to all oil refining companies, including petrochemical complexes, that the entire output of C3 and C4 hydrocarbon streams-such as propane, butane, propylene and butenes-be utilised  exclusively  for  LPG  production  and  supplied  only  to  the Public  Sector  Oil  Marketing Companies (IOCL, HPCL and BPCL). Further, refineries were also instructed not to divert these streams for manufacture of petrochemical products or any downstream derivatives. Simultaneously  OMCs  have  been  directed  to  ensure  that  the  LPG  so  produced  is  supplied exclusively  to  domestic  LPG  consumers.  As  a  result  of  these  initiatives,  domestic  LPG production has been increased by 40 per cent. At present, due to proactive management by the Government,  no  dry-outs  have  been  reported  at  distributorships  and  adequate  supplies  to households are being ensured.

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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