Oil PSUs absorb ₹40,000 cr loss in FY25 to keep LPG affordable; 96,000 retail outlets operational: Govt
New Delhi: India continues to offer one of the lowest domestic LPG prices globally, with
Pradhan Mantri Ujjwala Yojana
(PMUY) beneficiaries paying ₹553 per 14.2 kg cylinder despite a 58% increase in international prices, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said.
Chairing the Consultative Committee meeting of the Ministry of Petroleum and Natural Gas in Manesar, Haryana, Puri informed that state-run oil marketing companies (OMCs) incurred a combined loss of ₹40,000 crore last year to keep LPG prices affordable. Regular consume₹currently pay ₹853 per cylinder, while PMUY consumers pay ₹553. The per-day cooking cost is approximately ₹6.8 for Ujjwala households and ₹14.7 for non-PMUY consumers.
The minister stated that India's LPG coverage rose from 55% in 2014 to nearly 100% today. He said, 'The Government reduced excise duties twice—on November 4, 2021, and May 22, 2022—cutting petrol prices by ₹13/litre and diesel by ₹16/litre. A recent price hike in April 2025 was absorbed by oil companies, shielding consumers from additional burden.'
The session, attended by 27 Members of Parliament and Minister of State for Petroleum and Natural Gas Suresh Gopi, reviewed key developments in fuel affordability, LPG distribution, regional infrastructure, and energy resilience.
According to the ministry, India now operates over 96,000 fuel retail outlets, 314 oil terminals and depots, and a 24,000 km product pipeline network. These have supported the consistent availability of fuel, including strategic reserves and LPG caverns for emergency requirements.
On LPG consumption and distribution, the ministry reported daily deliveries of more than 56 lakh cylinders. Over 25,000 LPG distributors now operate nationwide, 86% of them in rural areas. These efforts have enabled deeper last-mile access and expanded usage.
Highlighting the PMUY's impact, the ministry noted that the government subsidizes the ₹1,058 market cost of each LPG cylinder by ₹505 for Ujjwala beneficiaries. The subsidy results in a retail price of ₹553 per cylinder. For regular consumers, the effective cost is ₹853.
MPs present in the meeting acknowledged the ministry's focus on balancing consumer interest and market volatility. They also raised issues related to regional disparities in infrastructure, price sensitivity, and energy resilience. The government assured them that their inputs would inform future policy development.
The ministry reiterated its commitment to providing affordable, accessible, and resilient energy solutions while protecting consumer interests through fiscal and policy measures.
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