Government releases LPG subsidy details as retail price reaches Rs 942 per cylinder: Minister

Image for Government releases LPG subsidy details as retail price reaches Rs 942 per cylinder: Minister

Your LPG cylinder should be costing you ₹1,695.

You're paying ₹942.

That gap? The government just explained exactly where it went — and why.

Here's the story nobody told you.

In February 2026, the West Asia conflict shut the Strait of Hormuz.

Sounds distant. It wasn't.

90% of India's LPG imports pass through that strait.

And India imports 60% of all the cooking gas it uses.

When the strait closed, supply didn't trickle — it choked.


🔥 So what actually happened next

Global LPG prices went vertical.

The international benchmark (Saudi CP) jumped to $796/MT by June 2026.

That pushed the real, market-determined cost of one 14.2 kg cylinder to ₹1,695.

For context — that's nearly double what you're handing over at the gas agency today.

The government stepped in with a playbook:

  • ⚡ Ramped up domestic LPG production
  • 🏠 Prioritized households over industry
  • 🌊 Diversified import sources away from Hormuz
  • 📦 Managed stock dynamically across regions

Translation: it absorbed the shock so your kitchen didn't feel it.


💸 The subsidy math, laid bare

  • Retail price today: ₹942
  • Ujjwala (PMUY) beneficiaries pay: ₹642 — a ₹300 subsidy, direct
  • OMCs got compensated ₹22,000 crore in FY23 for under-recoveries
  • Another ₹30,000 crore approved for FY26

And prices aren't uniform either.

Tripura pays ₹1,102.50. Maharashtra pays ₹941.50.

That ₹160 gap has held steady since 2022 — freight and logistics, not politics.


🧠 The bigger picture

Every January, prices spike nationwide.

Every year since 2022, they ease back down through the months after.

It's a pattern, not chaos.

This time though, a war in a strait 2,000 km away nearly broke that rhythm — and the only reason your stove is still lighting up at ₹942 is a subsidy bill running into tens of thousands of crores.

Cheap gas was never really cheap.

Someone was always paying the difference.

That's all for now!