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In 2023, India witnessed significant developments in the Liquefied Petroleum Gas LPG sector, including price changes, subsidies and expanded coverage under Pradhan Mantri Ujjwala Yojana (PMUY). These developments were aimed at ensuring affordable access to clean cooking fuel for households across the country.
Let's dive into the highlights of LPG prices, subsidies and general coverage in India.
LPG Gas Price
In 2023, LPG prices experienced fluctuations based on various factors such as world oil prices, fiscal policies, and market dynamics. To ensure affordability and accessibility for consumers, LPG prices are regularly reviewed and revised by the government. In particular, there have been cases of price reductions to ease the burden on households.
| City | Price Today |
|---|---|
| New Delhi | ₹ 1,103.00 |
| Mumbai | ₹ 1,102.50 |
| Gurgaon | ₹ 1,111.50 |
| Bengaluru | ₹ 1,105.50 |
| Chandigarh | ₹ 1,112.50 |
| Jaipur | ₹ 1,106.50 |
| Patna | ₹ 1,201.00 |
| Kolkata | ₹ 1,129.00 |
| Chennai | ₹ 1,118.50 |
| Noida | ₹ 1,100.50 |
| Bhubaneshwar | ₹ 1,129.00 |
| Hyderabad | ₹ 1,155.00 |
| Lucknow | ₹ 1,140.50 |
| Trivandrum | ₹ 1,112.00 |
Metro Cities' Commercial Gas Prices
On May 1, a substantial reduction in the price of commercial LPG cylinders was implemented. Prices were reduced by Rs 171.5, leading to a retail price of Rs 1,856.50 for a 19kg LPG cylinder in Delhi. In April, a similar reduction of Rs 91.5 was implemented, bringing prices down to Rs 2,028 per unit. Other major cities like Kolkata, Mumbai, and Chennai also witnessed price cuts, bringing relief to businesses and consumers.
| City | Commercial Gas Price (As of 1st May) |
|---|---|
| Delhi | Rs.1856.50 |
| Mumbai | Rs.1808.50 |
| Chennai | Rs.2021.50 |
| Kolkata | Rs.1960.50 |
Subsidy
In March this year, the Indian government extended the subsidy of ₹200 per LPG cylinder under Pradhan Mantri Ujjwala Yojana (PMUY) for another year. This measure will benefit 9.6 crore of families across the country. The Cabinet Committee on Economic Affairs approved the subsidy, which involves providing ₹200 per 14.2kg cylinder for up to 12 refills per year to PMUY recipients.
As of March 1, 2023, there were recipients of Rs 9.59 crore under PMUY. For the fiscal year 2022-23, the total expenditure on the subsidy is estimated at ₹6,100 crore while it is projected at ₹7,680 crore for 2023-24. This subsidy extension is intended to protect PMUY beneficiaries from the sharp rise in international LPG prices, which have risen due to various geopolitical factors.
LPG coverage in India
Over the past nine years, India has made significant progress in increasing the number of LPG consumers. The Active LPG household consumers increased from Rs 14.52 crore in April 2014 to Rs 31.36 crore in March 2023.
The remarkable growth can be attributed to the successful implementation of the Pradhan Mantri Ujjwala Yojana (PMUY), which has played a pivotal role in the expansion of LPG coverage from 62% in 2016 to a staggering 104.1% in 2022.
Keep Reading
- How to start an LPG Distribution business in India
- Petrol, diesel prices raised by 80 paise, domestic LPG by rupee 50
- Not everyone can afford to refill their gas cylinders
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