New Delhi, March 12: The government has approved a subsidy of ₹30,000 crore for public sector oil companies (PSUs) for the financial year 2025-26 to support the distribution of liquefied petroleum gas (LPG) cylinders at subsidized rates. This funding will be allocated to state-owned companies such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum, enabling them to provide domestic LPG cylinders at affordable prices. The announcement was made in Parliament on Thursday.
Currently, the price of a 14.2 kg domestic LPG cylinder in Delhi stands at ₹913.
In a written response in the Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi stated that under the Pradhan Mantri Ujjwala Yojana (PMUY), the government is providing a targeted subsidy of ₹300 per cylinder to poor consumers, allowing them to access the 14.2 kg LPG cylinder at an effective price of ₹613 in Delhi.
To enhance the availability of LPG in the domestic market, the ministry has directed all domestic oil refineries and petrochemical complexes to utilize C3 and C4 gas streams for LPG production.
The minister clarified that this LPG production will be exclusively supplied to public sector oil companies, with the directive issued under the Essential Commodities Act.
Additionally, Gopi mentioned that the government has established strategic crude oil reserves with a capacity of 5.33 million metric tons through a special company named Indian Strategic Petroleum Reserve Limited (ISPRL). These reserves will help mitigate supply chain disruptions during crises, such as conflicts in Iran.
He also noted that the prices of petrol and diesel in the country are determined by the market, with public sector oil marketing companies making pricing decisions. However, the government intervenes financially by adjusting the tax structure to alleviate the burden on consumers when necessary.
The minister highlighted that in November 2021 and May 2022, the central government reduced excise duty on petrol by ₹13 and on diesel by ₹16 per liter in two phases, passing the full benefit to consumers. Furthermore, in March 2024, oil companies reduced retail prices of petrol and diesel by ₹2 per liter.
Despite an increase in excise duty by ₹2 per liter in April 2025, the burden was not transferred to consumers.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
