Hours after domestic LPG prices rose by Rs 29 per cylinder, the government defended the move. It argued that Indian households remain shielded from the full effects of higher global energy prices caused by the West Asia crisis. Officials noted that supplying a 14.2-kg cylinder now exceeds Rs 1,600. Consumers in Delhi pay Rs 942 after the change, while Ujjwala beneficiaries pay Rs 642 on eligible refills. The statement added that Indian households buy cooking gas cheaper than those in neighbouring nations and well below rates in the United States, Australia and Canada. The latest hike follows a Rs 60 increase in March, bringing the total rise over three months to Rs 89. The Centre attributed the adjustment to a sharp climb in international LPG prices after disruptions in West Asia and the Strait of Hormuz. India imports about 60 per cent of its LPG, with prices tied to the Saudi Contract Price. That benchmark rose from US$542.5 per tonne in February to US$790 per tonne in June. Even after the increase, households pay far less than supply costs, with under-recovery near Rs 700 per cylinder. Ujjwala users receive a Rs 300 subsidy on the first four refills yearly. The government also compared prices, showing Indian rates remain lower than those in Pakistan, Nepal, Bangladesh, Sri Lanka and several developed economies. It further described steps taken to maintain supplies during the Hormuz disruption, including higher domestic output and new import sources.
