Domestic gas prices may increase from the new year, government made these important changes

By Samira Vishwas On Dec 30, 2025

LPG Price: In the month of November itself, all the oil companies including Indian Oil Corp, Bharat Petroleum Corp Limited and Hindustan Petroleum Corp Limited have signed contracts with America.

LPG Price: Oil companies in the country change their prices on the first date of every month. Now the new year is just starting, so huge changes can be seen in the prices. Along with this, there is a possibility of a major change in the subsidy on domestic gas cylinder i.e. LPG. Because recently government oil companies have signed annual supply contracts with American exporters. Currently, gas subsidy is calculated on the basis of Saudi price, but now subsidy can be cut in India after LPG coming from American, because its shipment costs 4 times more than Saudi.

Why can LPG become expensive?

If LPG comes from America instead of Saudi Arabia, the logistics cost will be about 4 times more. In such a situation, if the government has to give subsidy on gas cylinders to the common people at the existing rate, then discount on American supply is necessary. If this does not happen then there may be a cut in the subsidy given to the common people. That is, it is now almost clear that the burden of common people regarding LPG is going to increase.

Contract signed with America for 1 year

In the month of November itself, all the oil companies including Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd have signed contracts with America. This will be a one-year contract to import approximately 2.2 million metric tons per year (MMTPA) of LPG from the US, which is approximately 10 percent of India’s annual LPG imports.

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What is the current price?

Although there is a slight difference in the price of every city, but according to the data of IOCL, at present the price of domestic gas cylinder in Delhi is Rs 853 with subsidy. At the same time, commercial gas cylinder is available for Rs 1,580.50. Those under Ujjwala scheme may face the biggest blow due to this change. At present, under the Ujjwala scheme, a subsidy of Rs 300 is being given to the connection holders.