At the News18 Rising Bharat Summit 2025, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, asserted that India continues to provide the cheapest cooking gas in the world, even after the recent Rs 50 price increase per LPG cylinder.

This statement came amid questions raised about the government’s decision to hike LPG prices and its impact on millions of Indian households.

India’s Comparative Advantage in LPG Pricing

According to Minister Puri, consumers under the Ujjwala scheme pay just Rs 5 per day, while general category users pay Rs 14 per day for LPG, making India the most affordable country globally in terms of cooking gas cost.

Despite the Rs 50 increase, these daily expenditure figures highlight affordability when compared with international LPG rates, which have surged due to rising crude prices and global demand shocks.

Rs 50 LPG Price Hike: What It Means for Consumers

On Monday, Hardeep Singh Puri officially announced that cooking gas prices would rise by Rs 50 per cylinder, effective immediately. The hike applies to both the Ujjwala Yojana beneficiaries and those in the general category.

This increase is attributed to volatile international energy markets and a sharp rise in import costs.

While the price change has stirred public discourse, the minister reassured that India still maintains the lowest cost of LPG access worldwide. This move comes just months before several key elections, making it a politically sensitive topic.

International LPG Benchmark: The Saudi CP

Minister Puri also referred to the Saudi Contract Price (CP), a global benchmark used to determine LPG import costs. He shared that:

• Saudi CP increased by 63% in the past 19 months.

• It surged from $385 per metric tonne in July 2023 to $629 per metric tonne in February 2025.

This massive jump in international prices has a direct impact on domestic LPG pricing, especially since India imports a significant portion of its LPG.

Breakdown of LPG Cost for Indian Households

To provide a clearer picture, Puri broke down the effective per-day cost for LPG usage:

• Ujjwala Beneficiaries: Rs 5 per day

• General Consumers: Rs 14 per day

This calculation is based on standard consumption patterns, showing that subsidies under Ujjwala Yojana significantly reduce the financial burden on economically weaker sections.

The minister emphasized that no other country offers cooking gas at such low rates, despite heavy import dependency.

Political and Public Reactions

While the government insists that the LPG price hike is minimal and justified, opposition leaders and public forums have criticized the move, especially since it impacts middle- and low-income families.

Social media platforms and news outlets have seen mixed reactions, with many users questioning the timing of the hike and the broader implications on household budgets.

However, Puri’s defense centers around the comparative global pricing and India’s continued efforts to shield its citizens from international cost volatility.

The Ujjwala Yojana: A Cushion for the Poor

Launched in 2016, the Pradhan Mantri Ujjwala Yojana (PMUY) aims to provide clean cooking fuel to women from below poverty line (BPL) households.

Under this scheme:

• Subsidized LPG connections are provided to poor households

• A direct benefit transfer (DBT) mechanism ensures transparency in subsidy delivery

• Over 9 crore households have benefited from the scheme

Minister Puri reiterated that despite global pricing pressures, the government will continue to support poor families through targeted subsidies, keeping their effective LPG cost minimal.

Looking Ahead: Challenges in Global Energy Pricing

With ongoing geopolitical tensions, fluctuating crude prices, and rising global demand, LPG prices are likely to remain unstable in the near term.

India, being one of the largest importers of LPG, will need to strategize on long-term supply contracts, diversify import sources, and invest in domestic LPG infrastructure.

At the same time, ensuring affordability and accessibility for citizens, especially those below the poverty line, will remain a top policy priority for the Ministry of Petroleum.

Final Thoughts

While the Rs 50 hike might feel like a setback for Indian households, Minister Hardeep Singh Puri’s assurance about India offering the cheapest cooking gas globally is supported by data on international benchmarks and per-day consumer costs.

The government appears committed to striking a balance between economic sustainability and consumer affordability, particularly for the vulnerable sections under Ujjwala Yojana.

As the global energy landscape evolves, India's LPG policy will need to remain adaptive and people-centric, ensuring clean cooking fuel remains within reach of every household.

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