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Union government hikes LPG cylinder prices by ₹50, effective 8 April

Union Petroleum Minister Hardeep Singh Puri explained that despite global crude oil prices dropping to $60 per barrel, oil companies hold inventories priced at $75 per barrel, necessitating price adjustments due to the 45-day inventory lag

South First Desk

Published Apr 07, 2025 | 6:40 PM ⚊ Updated Apr 07, 2025 | 7:44 PM

LPG price

LPG cylinders. (Creative Commons)

Synopsis: Union Petroleum Minister Hardeep Singh Puri announced a ₹50 hike in LPG cylinder prices for both subsidised and non-subsidised consumers, effective from 8 April. Prices for PMUY beneficiaries will rise to ₹550, and for others to ₹853. Puri also clarified that the recent excise duty hike on petrol and diesel is to offset oil companies’ losses, not passed on to consumers

In a recent announcement, Union Petroleum Minister Hardeep Singh Puri revealed that the price of LPG cylinders would be increased by ₹50 for both subsidised and non-subsidised consumers, including Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries. 

The revised prices will come into effect from 8 April.

For PMUY beneficiaries, the price of a cylinder will rise from ₹500 to ₹550, while for other consumers, the new price will increase from ₹803 to ₹853. Puri clarified that the revision of prices would be periodically reviewed, typically every 2 to 3 weeks.

Additionally, Puri addressed concerns over the recent excise duty hike on petrol and diesel, explaining that it was not intended to burden consumers. 

Instead, the hike aims to offset a ₹43,000 crore loss incurred by oil marketing companies due to the subsidised gas prices. He further clarified that this excise rate hike would not be passed on to consumers.

Regarding the global crude oil prices, Puri explained that although the international price of crude oil has dropped to around $60 a barrel, oil marketing companies carry inventories over 45 days. He noted that the average cost of crude oil in these inventories was around $75 per barrel, explaining the need for adjustments in pricing.

Excise duty on petrol and diesel

The Government of India also raised the excise duty on petrol and diesel by ₹2 per litre, as per an official notification from the Department of Revenue, Ministry of Finance. The revised excise duty rates are ₹13 per litre for petrol and ₹10 per litre for diesel, effective from 8 April.

However, the Ministry of Petroleum and Natural Gas assured that retail prices of petrol and diesel will remain unchanged, ensuring no additional burden on consumers.

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Citizens, opposition criticise 

The price hike has triggered reactions across social media, with several individuals expressing frustration. 

Dinesh Gundu Rao, Minister of Health & Family Welfare in Karnataka, criticised the government’s approach, stating that the benefits of dropping global oil prices were not being passed on to consumers, while taxes were being increased. 

Several users on the social media platform X also expressed discontent, calling the decision burdensome for the common people.

MP Gurjeet Singh condemned the hike as “cruelty” amidst ongoing inflation, emphasising the negative impact on families. 

Another user, @Maheshbr4U, asked opposition leaders to protests.

@AbhishekSay wrote on X, recalling an old tweet by Smriti Irani, referencing her stance on previous LPG price hikes.


(Edited by Ananya Rao)

 

 

 

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