LPG cylinder price in Delhi: Why Ujjwala beneficiaries pay ₹642 for a cylinder that costs ₹1,267.24 to supply

Eligible beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) effectively pay ₹642 for a 14.2 kg LPG cylinder in Delhi, against the regular retail price of ₹942. The difference comes from a ₹300 subsidy that the government transfers directly to their bank accounts. The Centre is also bearing an additional ₹325.24 per cylinder towards the cost of supplying cooking gas, cushioning households and oil marketing companies from higher LPG costs.

Indian Oil Corporation (Indian Oil) highlighted the two layers of government support in a communication on 15 November, stating that the cost of supplying a 14.2 kg LPG cylinder stood at ₹1,267.24 in Delhi as of 13 November. The government bears ₹325.24 of this amount, while eligible Ujjwala beneficiaries receive a separate ₹300 direct benefit transfer (DBT), bringing their effective expenditure down to ₹642.

The distinction between the two forms of support is important. The ₹300 subsidy is credited directly to beneficiaries' bank accounts after the refill, while the additional ₹325.24 is support towards the cost of LPG supply. It is not another cash transfer to consumers.

A 14.2 kg domestic LPG cylinder is priced at ₹942 in Delhi for regular household consumers. Eligible PMUY beneficiaries receive a ₹300 subsidy for each eligible refill, reducing their effective cost to ₹642.

The government has also been absorbing part of the difference between the retail selling price and the cost of supplying LPG. Indian Oil's latest communication puts this additional support at ₹325.24 per cylinder.

The ₹300 targeted subsidy is available for the first four refills in a year under the revised entitlement announced by the government in June 2026. The benefit is intended to make cooking gas affordable for low-income households and encourage continued use of LPG.

The subsidy is available to eligible beneficiaries registered under the Pradhan Mantri Ujjwala Yojana. The scheme was launched in May 2016 to provide deposit-free LPG connections to adult women from poor households that did not have an existing LPG connection.

The government initially introduced a targeted subsidy of ₹200 per 14.2 kg cylinder in May 2022. It subsequently increased this to ₹300 in October 2023.

However, the number of subsidised refills has changed over time. In June 2026, the government restricted the ₹300 benefit to the first four refills annually, broadly in line with the average annual LPG consumption of Ujjwala households.

The subsidy is transferred directly into the beneficiary's bank account. Having a regular domestic LPG connection does not automatically make a consumer eligible for this benefit.

Kirti jha

Kirti Jha is a Senior Content Producer at Mint, where she writes on mutual funds, taxation, personal finance and macroeconomic developments. Her reporting focuses on helping readers understand complex financial developments through data-driven, research-backed stories that explain how policy changes, market trends and regulatory decisions affect investors and households. <br><br> Before joining Mint, Kirti worked at ET Money, where she specialised in mutual fund research and investment analysis. She tracked portfolio disclosures, fund manager strategies, sectoral allocation shifts and investment trends, distilling large datasets into investor-focused insights. Her work combined quantitative analysis with consumer-centric storytelling, enabling readers to better understand fund positioning, portfolio changes and long-term investment opportunities.<br><br> Kirti holds a Bachelor's degree in Economics from Indraprastha College for Women, University of Delhi, and a Master's in Finance from the Jindal School of Banking & Finance at O.P. Jindal Global University. Her academic training emphasised analytical thinking, quantitative research and financial decision-making, providing a strong foundation in understanding capital markets, financial systems and economic policy. With a combined experience in investment research and financial journalism, she is committed to producing accurate, accessible and insightful journalism that empowers readers to make well-informed financial decisions.

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