LPG Prices Up By ₹50, Even ‘Ujjawala’ Not Spared and Excise Duty on Petrol, Diesel Raised By ₹2/Litre

The Union government on Monday announced an increase in the price of domestic LPG cylinders alongside a hike in excise duties on petrol and diesel, effective from Tuesday, April 8. The hike of ₹50 will also be affecting the Ujjawala users who get LPG cylinders at subsidised rate. The cost of a 14.2-kg LPG cylinder after the hike ₹50 will cost ₹853 per cylinder, up from ₹803. Similarly for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the price of a subsidised cylinder will jump from ₹503 to ₹553.

"LPG price increase will enable oil companies to offset their under-recoveries so that consumers can continue to get affordable fuel. This hike will be reviewed in coming days”, said Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri. He highlighted that even after the hike, the price of LPG cylinders were 19 percent cheaper than the neighbouring countries and also below the market price of ₹1,028.50. According to the minister the price of LPG cylinder even after the hike of ₹50 was ₹175 cheaper than the market rate and equally ₹475 cheaper in case of subsidised cylinders. “This adjustment reflects the need to balance fiscal responsibilities with the realities of global energy markets,” Puri added. 

On the fuel front, the excise duty hike raises the effective tax on petrol to ₹13 per litre and on diesel to ₹10 per litre. However, the Ministry of Petroleum and Natural Gas has assured consumers that retail prices at fuel stations will remain unchanged for now. Public sector oil marketing companies (OMCs) like Indian Oil and Bharat Petroleum will absorb the additional cost, leveraging the recent decline in global crude oil prices, which have fallen from $77 per barrel on March 31 to $63-64 this week—the lowest in four years.

“The excise duty increase is not intended to burden consumers,” Puri emphasised. “It will help offset losses incurred by OMCs, estimated at ₹41,338 crore in 2024-25, due to subsidised LPG sales.” He hinted at a potential retail fuel price cut in the future if international oil prices remain low, adding, “We review these measures every few weeks.”