Cooking Gas LPG Price Hiked By Rs 50 Per Cylinder For All Users
LPG Price Hiked by Rs 50 Per Cylinder: Government’s Decision Affects Both Subsidised and Non-Subsidised Users
On April 7, 2025, Union Oil Minister Hardeep Singh Puri announced a Rs 50 increase in the price of domestic LPG cylinders. This hike affects all users, both subsidised under the Ujjwala scheme and non-subsidised customers. From now on, a 14.2 kg LPG cylinder will cost Rs 550 for Ujjwala scheme beneficiaries, up from Rs 500, and Rs 853 for non-Ujjwala users, up from Rs 803.
The decision to raise the price comes as global oil prices continue to fluctuate, affecting the domestic energy market. The hike is set to impact households and businesses that rely on cooking gas for daily operations, raising concerns about affordability, especially for low-income families.
Reasons Behind the LPG Price Hike
Minister Hardeep Singh Puri explained that the government had no choice but to raise the price in response to the increasing costs of international crude oil. He pointed out that the rising prices of oil directly affect the cost of LPG production and distribution. As crude oil prices rise globally, the government faces growing pressure to reduce its subsidy burden, which has led to the adjustment in LPG prices.
The price hike also aligns domestic LPG prices with international price trends, ensuring the sustainability of the energy market. However, it raises concerns for families who rely on subsidised LPG under the Ujjwala scheme. These families could find the increased cost difficult to bear, especially as other essential goods are also becoming more expensive.
Commercial LPG Cylinder Price Revision
In contrast, the price of commercial LPG cylinders was reduced by Rs 41 last week. This price cut impacts businesses that rely on large LPG cylinders, such as restaurants, hotels, and other commercial establishments. The reduction will provide some relief to these sectors, which have been struggling with rising operational costs.
While businesses will benefit from the price reduction, the simultaneous increase in domestic LPG prices highlights the government’s challenge in balancing the needs of households and businesses. The price revision for commercial LPG cylinders may help stabilize costs in certain industries, but the rising domestic prices will continue to affect lower-income households.
Excise Duty Increase on Petrol and Diesel
The government also raised excise duties on petrol and diesel. The excise duty on petrol has increased to Rs 13 per litre, and on diesel, it has risen to Rs 10 per litre. However, the government has assured that consumers will not face higher prices at the pump. The oil marketing companies will absorb the increased duties, and they will not be passed on to consumers.
The increase in excise duties will take effect on April 8, 2025. The government has stated that it will offset this duty increase by reducing the retail price of petrol and diesel. This measure ensures that consumers will not experience immediate price hikes despite the rise in duties.
Balancing Inflationary Pressures and Revenue Needs
Both the LPG price increase and the excise duty hike come at a time when inflationary pressures are rising across the economy. Many households already struggle with the increased cost of living, and the new price hikes are likely to add to their financial burden. Low-income families that rely on subsidised LPG could face difficulty in managing their monthly budgets with the increased cooking gas costs.
At the same time, the government needs to ensure that it can continue generating revenue, especially as it faces rising fiscal deficits. While increasing excise duties and LPG prices may seem like a solution, they also risk alienating consumers, especially those in the lower-income brackets. Balancing the needs of the economy with the welfare of consumers has become a key challenge for the government.
Impact on Businesses and Consumers
Businesses that rely on commercial LPG cylinders will likely benefit from the price reduction. This move is expected to lower the operational costs for restaurants, hotels, and other establishments. However, the price hike on domestic cylinders will likely strain households, particularly low-income families. With inflation already affecting the prices of essential goods, these price hikes will add to the overall financial burden on ordinary consumers.
While businesses may appreciate the relief from the commercial gas cylinder price drop, the price increase on domestic cylinders will hit home for many. The increased cost of cooking gas will make it more difficult for households, especially in rural areas, to afford cooking gas. The Ujjwala scheme, which was initially launched to make LPG accessible to lower-income households, will be directly impacted by this price hike.
Government’s Response and Future Expectations
The government has tried to balance the need to manage rising fuel costs with the reality of public dissatisfaction. While the price hike on LPG is seen as a necessary step in maintaining financial stability, the government must also ensure that its policies do not disproportionately affect the most vulnerable sections of society.
Looking ahead, further changes in fuel and LPG prices are likely, especially if global oil prices continue to fluctuate. The government will need to stay flexible in adjusting policies to ensure that the costs of fuel and cooking gas remain manageable for consumers. The challenge will be to protect consumers while maintaining the sustainability of the domestic energy market.
The Road Ahead: Managing Consumer Expectations
As the government continues to adjust fuel and energy prices, it must consider the long-term effects on inflation and consumer welfare. While some measures, like the reduction in commercial LPG prices, will help businesses, the ongoing price hikes in domestic LPG cylinders will be harder to swallow for consumers. The government must remain committed to addressing the needs of both households and businesses, finding ways to reduce the impact of these price hikes on low-income families.
The price adjustments for petrol, diesel, and LPG highlight the delicate balance the government must strike between managing economic growth, fiscal policy, and the welfare of its citizens. The upcoming months will be crucial in determining how these changes impact both the economy and the average consumer. If oil prices continue to rise, further price hikes could be inevitable, putting additional pressure on already strained household budgets.
Conclusion: Navigating Economic Challenges
The recent price hikes for LPG and fuel duties underscore the complexities of managing a country’s energy needs. While the government works to stabilize the domestic market and meet its fiscal goals, it also faces significant challenges in ensuring that these changes do not exacerbate inflation or hurt the most vulnerable members of society.
The government’s strategy to balance price hikes with efforts to absorb costs through oil marketing companies could offer some short-term relief. However, the long-term effects will depend on how well the government can manage fluctuating global oil prices and maintain public confidence in its economic policies. For now, consumers will need to adjust to the changes, but the government’s approach to managing these issues will be pivotal in shaping the future of energy pricing in the country.
