LPG Subsidy: Increase in LPG Cylinder Price from Oil Companies – Learn why LPG is not subsidized.


  • The price of a gas cylinder has gone up by Rs 50 this month
  • But the situation regarding LPG subsidy is not clear
  • The government has not told oil companies whether to subsidize

New Delhi
Oil companies have hiked LPG cylinder prices by Rs 50 this month, but the situation regarding subsidies is unclear. Many customers booked cylinders at an increased rate this month but the grant did not reach their account. In Delhi, the price of a 14.2-kg gas cylinder has gone up from Rs 594 in November to Rs 644 in December. Gas prices were raised five months later. The price of a gas cylinder has not changed since July.

Most of the cooking gas customers have not received a subsidy since May. The reason behind this was that the price of subsidized cylinders and commercial cylinders remained the same due to the reduction in international oil prices and the increase in domestic refill rates. In June last year, subsidized gas cylinders were priced at Rs 497 in Delhi. Since then, it has risen by Rs 147. In June, the grant in Delhi was Rs 240.

What a mess
Industry insiders say the government has not yet told government oil companies whether consumers who buy cylinders in December will receive subsidies. In the first half of this financial year, the government’s gas subsidy for cooking has gone up to Rs 1126 crore from Rs 22635 crore in the financial year 2019-20. LPG subsidies fell by 28 per cent in 2019-20 due to reduction in oil prices and increase in domestic refill rates. In 2018-19, it was Rs 31,447 crore.

How much
Oil companies have hiked LPG prices this month. The price of a 14.2 kg cylinder has been increased by Rs 50. According to IOC, the country’s largest oil company, the price of a 14.2-kg unsubsidised gas cylinder in Delhi is now Rs 644. It has risen to Rs 670.50 in Kolkata, Rs 644 in Mumbai and Rs 660 in Chennai. Earlier, the price of a 14.2 kg gas cylinder in Delhi was Rs 594 without subsidy. It was Rs 620.50 in Kolkata, Rs 594 in Mumbai and Rs 610 in Chennai. Similarly, a 19 kg cylinder in Delhi has been priced at Rs 1,296, Rs 1,351.50 in Kolkata, Rs 1,244 in Mumbai and Rs 1,410.50 in Chennai.

Subsidy on gas cylinders
The government subsidizes 12.2 kg 12 cylinders per family per year. If customers want more cylinders than this, they have to buy at market price. Oil companies review the price of gas cylinders every month. Its price is determined by factors such as changes in average international standards and foreign exchange rates.

Check LPG prices like this
To check the price of LPG cylinder you have to go to the website of the government oil company. The companies here issue new rates every month. (https://iocl.com/Products/IndaneGas.aspx) You can check the price of your city gas cylinder at this link.