News18 | When Will People Get Cheaper Domestic LPG? This is What Petroleum Minister Hardeep Puri Says

Feb 09,2023

The Centre on Thursday said that domestic LPG cylinders can be sold at “even more economical rates” if the international price of fuel comes down from its current price of USD 750 per metric tonne. 

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said the international price is determined by a “variety of factors" and “one of the analysis I read said that in a few years time it will all be thing of the past because there will be so much gas available".  

Responding to DMK MP Kalanidhi Veeraswamy’s question on the price of domestic LPG in Lok Sabha, Puri said the government is “sensitive" to the requirements of the consumers, particularly the most vulnerable.

“The Saudi contract price went up by 330 per cent, yet the price increase was very small for the domestic thing. It would be ideal if the international Saudi contract price could come down from USD 750 per metric tonne, it would enable domestic LPG to be sold at even more economical rates," he added.

The minister informed India imports more than 60% of its domestic LPG consumption. “The average Saudi CP prices on which the domestic LPG prices are based, increased from US$ 454/MT to US$ 693/MT during 2019-20 to 2021-22. During 2022-23 the average Saudi CP has further risen to US$ 710 /MT till February 2023.

For domestic LPG, Government continues to modulate the effective price to consumers. Public Sector Oil Marketing Companies have suffered huge losses on sale of domestic LPG. To compensate these losses, the Government has recently approved a one-time compensation of Rs. 22000 crores to OMCs. The Government w.e.f. 21st May, 2022, has started a targeted subsidy of Rs. 200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year for year 2022-23,” he said in the written reply.

Puri said the Retail Selling Price(RSP) of a domestic LPG cylinder (14.2 Kg) is Rs 1053 in Delhi.