SF Prep Notes

Indian households pay among the lowest cooking gas prices in the world: Petroleum Ministry

On 7 June 2026, the Petroleum Ministry said an Ujjwala beneficiary pays an effective ₹642 for a 14.2 kg LPG cylinder and a general Delhi consumer ₹942, against a supply cost of over ₹1,600.

Summary

The Ministry of Petroleum & Natural Gas said on 7 June 2026 that Indian households pay among the lowest cooking gas prices in the world. A Pradhan Mantri Ujjwala Yojana (PMUY) beneficiary pays an effective ₹642 for a 14.2 kg cylinder and a general consumer in Delhi ₹942, while the cost of supply has risen to over ₹1,600 — an under-recovery of about ₹700 per domestic cylinder. Ujjwala households get ₹300 a cylinder on the first four refills each year (₹1,200 a year). The Saudi CP for LPG has risen by about 46% since February after the Strait of Hormuz disruption. Cumulative under-recovery on domestic LPG reached ₹60,000 crore by the end of the last financial year, and the Union Cabinet approved ₹30,000 crore compensation to marketing companies.

Key facts

Date
7 June 2026
PMUY effective price
₹642 per 14.2 kg cylinder
Delhi general price
₹942
Supply cost
>₹1,600; under-recovery ~₹700/cylinder
PMUY subsidy
₹300 on first 4 refills a year (₹1,200)
Saudi CP
Up ~46% since February
Under-recovery
₹60,000 crore cumulative; ₹30,000 crore compensation approved

Practice MCQs 3 questions

Q1

According to the Petroleum Ministry on 7 June 2026, what effective price does a PMUY beneficiary pay for a 14.2 kg LPG cylinder?

Show answer

Correct answer: A — ₹642

A PMUY beneficiary pays an effective ₹642; the general Delhi consumer pays ₹942.

Q2 Advanced

What targeted subsidy do Ujjwala households receive on LPG, as stated on 7 June 2026?

Show answer

Correct answer: C — ₹300 a cylinder on the first four refills each year

Ujjwala households receive ₹300 a cylinder on the first four refills each year — ₹1,200 per beneficiary a year.

Q3 Advanced

Consider the following statements based on the Petroleum Ministry's note of 7 June 2026: 1. Cumulative under-recovery on domestic LPG reached ₹60,000 crore by the end of the last financial year. 2. The Union Cabinet approved compensation of ₹30,000 crore to the oil marketing companies. 3. The Saudi CP for LPG has fallen by about 46% since February. Which of the statements given above is/are correct?

Show answer

Correct answer: B — 1 and 2 only

Statements 1 and 2 are correct. Statement 3 is wrong: the Saudi CP for LPG has risen by about 46% since February.

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