Cooking gas in India cheaper than abroad, says Modi government
What's the story
The Ministry of Petroleum and Natural Gas has said that Indian households pay much less for cooking gas than those in other countries. The ministry's statement comes amid a price hike of ₹29 per cylinder today due to rising costs stemming from the West Asia crisis. A beneficiary of the Pradhan Mantri Ujjwala Yojana (PMUY) pays an effective price of ₹642 for a 14.2kg cylinder, while general consumers in Delhi pay ₹942.
International contrast
Price of cylinder in other countries
The price of a 14.2kg cylinder in India (Ujjwala, effective after revision) is ₹642. In Pakistan, it costs ₹1,046; in Nepal, it's ₹1,207; in Bangladesh, about ₹1,225; in Sri Lanka, around ₹1,241; and in the US around ₹1,755. The cost is about ₹1,765 in Australia and ₹2,411 in Canada.
Cost absorption
Government's role in price control
The government has been absorbing the difference between international and domestic prices for cooking gas. This is done to prevent consumers from bearing the brunt of rising costs due to international price hikes. The Ministry of Petroleum and Natural Gas emphasized that this burden has been absorbed upstream rather than passed on to consumers during periods of sharp international cost increases.
Production boost
Domestic LPG production has been raised by over 60%
To counter the impact of import constraints, domestic LPG production has been raised by over 60%. This was done to ensure a steady supply of cooking gas despite disruptions in imports. The ministry also said that sustained coordination ensured LPG-laden vessels continued to move out of the Strait of Hormuz without paying any toll.
Enforcement measures
Measures to prevent diversion of subsidized LPG
The ministry also said that anti-diversion enforcement was tightened in coordination with state governments and industry associations. OTP-based delivery verification was raised to about 90%, preventing the leakage of subsidized domestic LPG into the commercial market. This is part of efforts to protect scarce domestic supply and ensure it reaches intended consumers.