Indian households continue to pay among the lowest cooking gas prices in the world

📌 Summary:

• A PMUY (Ujjwala) beneficiary pays an effective ₹642 per 14.2 kg LPG cylinder; a general consumer in Delhi pays ₹942 — against a supply cost now exceeding ₹1,600
• The Indian cylinder is cheaper than in every neighbour: Pakistan ₹1,046, Nepal ₹1,207, Bangladesh ~₹1,225, Sri Lanka ₹1,241; and far below the US ~₹1,755, Australia ~₹1,765, Canada ~₹2,411
• Ujjwala households get ₹300 DBT per cylinder on the first four refills each year (~₹1,200/beneficiary/year); even a non-PMUY household pays ~₹700 below market cost
• Government bears an under-recovery of ~₹700 per domestic cylinder; the Saudi Contract Price (CP) for LPG has risen ~46% since February
• Domestic LPG price is modulated (not a direct pass-through), unlike the commercial cylinder which is revised monthly to the international benchmark
• India kept energy cargoes moving through the Strait of Hormuz during the West Asia disruption; no shortage of any petroleum product

🎯 UPSC Relevance: GS3 (Economy) — energy pricing, subsidies, import dependence, administered vs market pricing.

📝 Prelims Facts:

• PMUY effective price ₹642; Delhi general consumer ₹942; supply cost >₹1,600
• Saudi CP (set by Saudi Aramco at the start of each month) benchmarks India imported LPG cost; up ~46% since February
• DBT to Ujjwala: ₹300/cylinder on the first 4 refills/year

🔑 Key Term: Saudi Contract Price (CP) — the monthly benchmark set by Saudi Aramco that determines the landed cost of imported LPG.