LPG Cylinders Costlier By Rs 50, Excise Duty on Petrol, Diesel up by Rs 2 Each, No Change In Retail Prices

The LPG cylinder hike is for both subsidised and non-subsidised cylinders

Get ready to pay Rs 50 more for your LPG cylinders from tomorrow.

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri on Monday announced the hike in LPG cylinders. Speaking at a press conference, the minister said that the 14.2-kg domestic cylinder worth Rs 803 will now cost Rs 853.

The LPG cylinder hike is for both subsidised and non-subsidised cylinders.

“International price of LPG has been going up. It went up from $415 per MT to $712 per MT, but we never passed it to consumers. The rate of increase has been absorbed by the OMCs…The Rs 50 increase on LPG cylinders addresses the current under-recovery and not the back log. For the back-log, we will be making a request to the Finance Ministry. The three state-run OMCs have incurred LPG under-recovery of Rs 41,338 crore in the last fiscal,” the minister said.

India imports more than 60% of its domestic LPG consumption. The prices of LPG in the country are linked to its price in the international market.

The government today also announced a Rs 2 per litre hike in excise duty on petrol and diesel but there will be no change in the retail prices of fuel. The oil marketing companies said that they will absorb the price hike and not pass it on to the consumers.

“Despite the recent hike in #ExciseDuty, #PSU Oil Marketing Companies have confirmed there will be no increase in retail prices of #Petrol and #Diesel. Fuel costs remain unchanged,” the Ministry of Petroleum and Natural Gas said in a post on X.

Despite the recent hike in #ExciseDuty, #PSU Oil Marketing Companies have confirmed there will be no increase in retail prices of #Petrol and #Diesel.
Fuel costs remain unchanged. ⛽✅ #FuelUpdate #MoPNG pic.twitter.com/rLH0C46pNH

— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 7, 2025

With the hike, the excise duty on petrol now stands at Rs 13 per litre, while that on diesel has increased to Rs 10 per litre.

The hike in excise duty comes amid international oil prices crashing to their lowest levels in nearly four years. The benchmark Brent crude has fallen to $63 per barrel—the lowest since April 2021—while the US West Texas Intermediate (WTI) crude has slipped to $59.57 per barrel.

Officials said the fall in crude prices reduces input costs for oil refining and marketing companies like Indian Oil Corporation and Bharat Petroleum, thereby increasing their retail margins. This allows the government to raise excise duty and generate additional revenue without passing the burden onto consumers.

India imports more than 60% of its domestic LPG consumption and nearly 85% of its oil requirement.

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