LPG Cylinder Price – Starting April 8, 2025, domestic cooking gas has become more expensive by Rupees 50 per cylinder. This hike will impact both general users and beneficiaries of the Ujjwala Yojana scheme. At the same time, prices of CNG have gone up by Rupee 1 per kilogram, and taxes on petrol and diesel have also been raised. The government said this move was necessary to manage rising input costs and to support oil companies that have been facing losses for a while.
How Much Will You Pay for LPG Now
For Ujjwala users, who had received free LPG connections under the government scheme, the price of a 14 point 2 kilogram cylinder has now increased from Rupees 503 to Rupees 553 in Delhi. General users will now have to pay Rupees 853 per cylinder instead of the earlier Rupees 803.
The last time the rates were changed was back in March last year, when the prices were actually reduced by Rupees 100. So, after almost a year, this is a fresh hike, and it has been introduced mainly due to rising international prices and higher input costs.
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Why the Price Hike Was Needed
Oil Minister Hardeep Singh Puri explained that public sector oil companies have been selling LPG below cost for a long time. In fact, they faced a huge loss of over Rupees 41 thousand crore during the financial year that ended in March 2025. According to him, this price hike is still moderate compared to the actual market value of LPG.
He said the international benchmark for LPG pricing, known as the Saudi CP, has shot up by 63 percent over the past few months. In February 2025, the price was USD 629 per tonne, compared to just USD 385 in July 2023. Based on this, the actual price of an LPG cylinder in Delhi should be around Rupees 1028. But to protect the public, oil companies have not passed on the full increase and are still bearing a portion of the cost.
What Does It Mean for Daily Cooking Costs
The oil ministry said that even with the new prices, the daily cost of cooking remains reasonable. For Ujjwala households, the average cost of cooking per day using LPG is about Rupees 6.10, and for general users, it is around Rupees 14.58. The minister also assured that prices will be reviewed every month and reduced if international prices soften.
CNG Also Gets Costlier
Along with LPG, prices of Compressed Natural Gas or CNG have also gone up by Rupee 1 per kilogram in Delhi and nearby areas. CNG will now cost around Rupees 75.09 per kilogram. This change comes after the government increased the price of natural gas used for making CNG from USD 6.50 to USD 6.75 per million British thermal units.
Petrol and Diesel Taxes Raised, But Retail Prices Stay the Same
The government has also increased the excise duty on petrol and diesel by Rupees 2 per litre each. However, there will be no increase in the retail prices of these fuels. This is because international crude oil prices have dropped, and the government has decided to adjust the excise hike against the expected price cut.
Currently, petrol in Delhi costs Rupees 94.77 per litre, and diesel is priced at Rupees 87.67 per litre. Even after the duty hike, these rates will stay the same unless there is a major change in global oil prices.
How the Tax Hike Will Help
The government says that the additional tax collection from this move will help cover the past losses of oil companies. The extra Rupees 2 per litre on petrol and diesel is expected to generate about Rupees 32 thousand crore annually. Out of this, a portion can be used to compensate the oil companies for the under-recovery in LPG prices.
In total, India consumes about 16 thousand crore litres of petrol and diesel every year. So, even a small change in taxes can bring in big money for the government.
Why Did the Government Do This Now
The oil minister defended the timing and said this move was needed to keep the oil marketing companies running smoothly. He pointed out that whenever international oil prices drop, it gives the government an opportunity to adjust taxes without burdening the public.
This is not the first time the government has used this strategy. In the past too, especially between 2014 and 2016, the government increased excise duty multiple times to boost revenue when global prices were low.
While the hike in LPG prices will pinch the pocket a bit, the government has tried to balance it out by not increasing petrol and diesel prices. For most households, this means a slightly higher monthly kitchen bill, especially for those who rely only on LPG.
If international prices continue to fall, there is a possibility that LPG prices might be reduced in the coming months. Till then, consumers will need to manage the extra cost, while the government works on supporting the oil companies to recover their losses.
