- Sources said the Saudi Contract Price has increased substantially over the past few months
- "This translates to a hike of 20 paisa per day per user for a family of four," a source said
- Prices will not change for users under the Ujjwala Yojana scheme
Explaining the rationale behind hiking the prices of household cooking gas cylinders by Rs 60, government sources have said it was necessary because the Saudi Contract Price (CP), which serves as the primary benchmark for the country's LPG imports, has increased substantially over the past few months.
Pointing out that cylinder rates have increased by only Rs 110 over the past few years, the sources told NDTV Profit that a hike of Rs 60 is not very steep. "On average, a cylinder lasts for three months. This translates to a hike of 20 paisa per day per user for a family of four," a source said on Saturday.
The sources clarified that prices will not change for users under the Ujjwala Yojana social welfare scheme, and the government will keep paying Rs 60 extra for them.
"Even for non-Ujjwala users, the cost of a cylinder is lower than the market price," said a source.
Putting to bed speculation about a rise in the price of petrol and diesel given surging crude oil prices amid the war involving the US, Israel and Iran, the sources said there is "no chance" this will happen.
"The government has cut central excise thrice on petrol and diesel and retail prices in India are among the cheapest globally. Neighbouring nations and certain European countries have increased prices, but India has not," a source stated.
Speaking to reporters on Friday, Union Minister for Petroleum and Natural Gas Hardeep Puri said there is no shortage of energy in India despite disruptions in supplies because of the critical Strait of Hormuz being closed to ships.
"Our priority is to ensure the availability of affordable and sustainable fuel for our citizens, and we are doing it comfortably. There is no shortage of energy in India and there is no cause of worry for our energy consumers," the minister said.
On Friday, the US also announced that India has been granted a 30-day waiver, allowing refiners to purchase Russian oil. In a statement on Saturday, the Centre said it is continuing to purchase crude oil from any source that has the most competitive price and does not need any country's permission to do so.
"India has never depended on permission from any country to buy Russian oil. India is still importing Russian oil even in February 2026, and Russia is still India's largest crude oil supplier. For three years of the Russia-Ukraine war, India kept buying Russian oil despite US and EU objections. Imports increased significantly after 2022 due to discounted prices and refinery demand," the Centre said in a statement.
