New Delhi, June 8 (JKNS) : The Central Government on Monday clarified that domestic LPG consumers continue to receive substantial indirect subsidies despite the recent increase of Rs 29 per cylinder, with non-Ujjwala beneficiaries receiving an effective subsidy of around Rs 700 per cylinder and Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries receiving benefits worth nearly Rs 1,000 per cylinder.
Addressing an inter-ministerial press briefing, Additional Secretary, Ministry of Petroleum and Natural Gas, Praveen Mal Khanooja, said that the actual cost of a 14.2 kg LPG cylinder, based on prevailing Saudi Contract Prices (CP), exceeds Rs 1,600, while consumers currently pay only Rs 942.
He explained that even non-Ujjwala consumers receive an indirect subsidy of approximately Rs 700 per cylinder, while Ujjwala beneficiaries receive an additional direct subsidy of Rs 300, taking their total benefit to nearly Rs 1,000 per cylinder.
Khanooja further stated that Oil Marketing Companies (OMCs) are presently facing an under-recovery of around Rs 700 per 14.2 kg cylinder. He recalled that the Government had previously compensated OMCs with nearly Rs 52,000 crore during FY 2022-23 and FY 2023-24 to offset similar losses.
On fuel supply and availability, the Ministry assured that crude oil, LPG, and natural gas supplies remain stable despite ongoing geopolitical developments in West Asia. Domestic LPG production has been maximized and recently touched 53 thousand metric tonnes (TMT) per day on World LPG Day, marking a significant increase of nearly 60 percent compared to pre-crisis levels.
The Ministry reported notable improvements in LPG distribution services, with distributor backlogs reduced to less than four days. Online booking rates have reached 99 percent, while delivery authentication stands at 96 percent. Over the past four days, average daily LPG bookings touched 42 lakh cylinders, while deliveries averaged 44 lakh cylinders per day.
Commercial LPG consumption has also shown strong recovery, reaching nearly 70 to 75 percent of pre-crisis demand levels.
Regarding PMUY beneficiaries, officials noted that the Rs 300 subsidy is currently available on the first four cylinders purchased annually, aligning with the average yearly consumption of four to five cylinders by beneficiary households.
Defending the recent price revision, Khanooja described the Rs 29 increase as a minimal burden on consumers, estimating it to be roughly Rs 1 per day for a household using 12 cylinders annually, or about 20 paise per day per family member.
The Ministry also highlighted progress in other energy sectors. PNG (Piped Natural Gas) connections across the country have crossed 1.69 crore, with more than 9.16 lakh new connections added since March 2026. The recently launched E85 flex-fuel, designed for compatible vehicles, is currently available at 50 fuel stations and is expected to expand to 5,000 stations nationwide by December 2027. The fuel is priced approximately Rs 20 per litre lower than E20 fuel.
Meanwhile, enforcement agencies have intensified inspections across the country. In the past four days alone, authorities conducted over 1,800 raids on petrol and diesel retail outlets and inspected 890 LPG distributors, leading to the registration of FIRs and imposition of penalties in cases of violations.
The Government reiterated its commitment to ensuring affordable energy access, uninterrupted fuel supplies, and enhanced service delivery for consumers across the country. (JKNS)
