Key Points
- LPG cylinder prices have been raised by ₹50, taking the domestic cylinder cost from ₹803 to ₹853.
- Beneficiaries of the Ujjwala Yojana will now pay ₹550 for subsidized cylinders, up from ₹500.
- Excise duty on petrol and diesel has been increased by ₹2 per liter, effective April 8, but retail prices remain unchanged.
- The price hike will impact millions of households and businesses across India.
New Delhi: The central government has announced a sharp increase in LPG cylinder prices, raising the cost of domestic cooking gas by ₹50 per cylinder. Union Petroleum Minister Hardeep Singh Puri confirmed the price revision during a press conference on Monday, April 7, 2025. As a result, the price of a 14.2-kg domestic LPG cylinder will increase from ₹803 to ₹853 for general users. For beneficiaries under the Ujjwala Yojana scheme, subsidized cylinders will now cost ₹550, up from ₹500.
Impact of LPG Price Hike
This price hike will affect millions of households across India that rely on LPG for cooking. It marks the first change in domestic LPG prices since August 2024. The increase comes at a time when global crude oil prices are witnessing sustained volatility due to geopolitical tensions and trade disputes.
In addition to domestic LPG, commercial LPG cylinder prices were recently reduced by ₹41 last week, bringing some relief to restaurants and businesses that use these cylinders extensively.
City-Wise Revised LPG Prices
The new LPG prices vary across major cities:
- Delhi: ₹853 (from ₹803)
- Kolkata: ₹879 (from ₹829)
- Mumbai: ₹852.50 (from ₹802.50)
- Chennai: ₹868.50 (from ₹818.50)
How Are LPG Prices Determined?
LPG prices in India are revised monthly and are closely linked to global crude oil rates and currency exchange fluctuations. Factors such as transportation costs, refining charges, taxes, and profit margins also contribute to the final price. Government subsidies under schemes like Ujjwala help cushion the impact for eligible consumers.
Excise Duty on Petrol and Diesel Increased
Alongside the LPG price hike, the government has raised excise duty on petrol and diesel by ₹2 per liter, effective April 8, 2025. This revision increases excise duty on petrol from ₹11 to ₹13 per liter and on diesel from ₹8 to ₹10 per liter. However, retail prices for consumers will remain unchanged as oil marketing companies (OMCs) have been instructed to absorb the hike against falling global crude oil prices.
Global Oil Price Trends
The excise duty hike coincides with a significant drop in international crude oil prices:
- Brent crude fell below $65 per barrel last week—its lowest level since April 2021.
- West Texas Intermediate (WTI) crude futures dropped by 35% this year due to weakening demand and oversupply concerns.
The government’s decision aims to balance revenue generation while ensuring affordability for consumers amidst fluctuating global oil markets.
