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LPG cylinders are not available from dealers at subsidised rates now . One has to pay market rate and get subsidy later in the Bank account. And LPG prices are revised every month  based, on the average international prices in the preceding month, by  the three gas companies or fuel retailers ie Indian Oil Corporate( IOC), Hindustan Petroleum Corp(HP) and Bharat Petroleum Corp (Bharat Gas).  So there is a confusion on what is the price that one has to pay when cylinder is delivered, how much subsidy will one get? We shall try to cover these questions in this article.

Overview of LPG Subsidy

LPG cylinder ( Liquid Petroleum Gas ) is used for domestic cooking purposes in many states as a main fuel source,by  Indian Oil Corporate( IOC) which provides LPG cylinder under the name Indane, Hindustan Petroleum Corp(HP) and Bharat Petroleum Corp (Bharat Gas). According to the 2011 census data carried out in India, 35 million (30 %) Indian households used LPG as cooking fuel, which is increasing 3-4 % by every year. The 14.2 kg cylinder is used for domestic usage and 19 kg for commercial usage and government has also introduced 5 kg cylinder for domestic and commercial usage. LPG is delivered to consumers at their home , either in pressurised cylinders of 14.2 kg or through gas pipes. Domestic LPG Cylinders are subsidised by the government in India.

  • Domestic LPG cylinders are sold to LPG consumers at Market Determined Price. LPG prices are revised every month  based, on the average international prices and rupee-US exchange rate.in the preceding month, by  the three gas companies supplying ie Indane, HP and Bharat Gas. These prices changes regularly due to various factors like political, Government regulations, supply and demand, crude oil, natural disasters, taxes etc.
  • Consumers will receive subsidy in their bank account,linked with Aadhaar or not, as per their entitlement of subsidized cylinders
  • Domestic Consumers are entitled to 12 subsidised LPG cylinders in a financial year. Number of cylinders are counted  from 1 Apr  to next year 31 Mar. For ex 1 Apr 2015 to 31 Mar 2016.
  • To check you status you can go to MyLPG.in and choose your company Bharat Gas,Indane or HP and click on Check DPTL (CTC) status
  • You can verify the number of cylinders, subsidy received on your Oil company(Indane, HP,Bharat Gas) LPG portal . How to verify Subsidy details are explained in our article LPG Subsidy and Number of cylinders : Verifying details on Distributor’s Transparency Portal

How is the LPG cylinder priced?

LPG cylinder prices vary from state to state and city to city in India. Many factors affect the end price like state taxes as well as import locations. Price Build-up of Domestic LPG (Subsidized) at Delhi is shown in figure below, showing prices at major milestone. This is available from IOCL webpage on Build up of Domestic LPG. There is an interesting infographic on how LPG Cylinder is priced  is available at factly.in

How LPG cylinder is priced

How LPG cylinder is priced

Why does the LPG cylinder price change?

LPG cylinder prices fluctuates due to variety of factors, such as:

  • Market forces ex cost of crude oil ,inflation, seasonal demands, taxes,
  • Global events ex: wars, gas shortages, security threats to oil supplies, and
  • New technology such as alternative fuel sources, new types of vehicles

LPG prices also differ from place to place due to taxes imposed by State Government just like for petrol price.

The Prices of LPG from 12-Nov-2013 to 1-Mar-2015  for four metros is shown in image below . It is based on Data from Indane webpage on Previous Prices

Prices of 14.2 LPG cylinder over time

Prices of 14.2 cylinder over time

How to find the price of LPG cylinder, how much is subsidy

You can find the prices of all LPG cylinders for the products at Indane webpage on Product Price of  Indane Gas

Indane webpage on prices of LPG cylinder

Indane webpage on prices of LPG cylinder

To find about the price of subsidized and non subsidized cylinder go to http://indane.co.in/tarrifs_price.php?mode=Search&txtMarket=&txtProduct=&serchbutton=Search or Click on Subsidised prices or Non Subsidised prices

LPG search price in your city and Previous prices

LPG search price in your city and Previous prices

Search webpage  is shown in image below. Enter name of your city in Market Name and select ALL for Product Name

Cost of subsided and Non subsidised Cylinder

Cost of subsided and Non subsidised Cylinder

For example when I entered Jaipur as Market Name, and All as Product, information made available is shown in image below. People in Jaipur would have to Market rate of 610.50 i.e 14.2 KG NON SUB DOM CYLINDER on delivery and would get the subsidy of 14.2 KG NON SUB DOM CYLINDER (610.50) – 14.2 KG N PACKED DOM CYLINDER(420) = Rs 220.50

Prices of Subsided and Non subsidised LPG cylinder

Prices of Subsided and Non subsidised LPG cylinder

Our article LPG Subsidy and Number of cylinders : Verifying details on Distributor’s Transparency Portal explains how you can verify how many cylinders were delivered to you, at what cost and how much subsidy you got.

Bharat Petroleum is also coming up with similar format  at Bharat Petroleum web page Your Corner but many details were missing on 26-Apr-2015.

Giving up of LPG subsidy

In Mar 2015, Prime Minister Narendra Modi appealed to the well off people to give up subsidised cooking gas, and expressed his government’s resolve to reduce dependence on energy imports by 10 per cent by 2022. The government is expecting that about one crore well off consumers will surrender the LPG subsidy. There are about 15.3 crore LPG consumers in the country. Many ministers and other people have already given up the subsidy on cooking Gas.  Giving up subsidised LPG will help cut the government’s subsidy bill. In 2015-16 Budget estimates, petroleum subsidy has been halved to Rs 30,000 crore, from estimated Rs 60,270 crore in the current fiscal. Of Rs 30,000 crore for next fiscal, Rs 22,000 crore has been earmarked for LPG subsidy and the rest is for kerosene.

  • Visit the Official portal mylpg.in
  • On the top of the webpage, you will see a option  Click to Give Up LPG Subsidy Online,as shown in image below, click on it
  • You will be asked to select your service provider i.e. Indane, Bharat Gas or HP Gas After selecting the provider, you will be automatically taken to the corresponding page
  • To continue, you need to enter your details. If you have already registered online, enter the details and if not so enter your LPG details in the space given to get started
  • After logging in just follow the required steps.
LPG give up subsidy

LPG give up subsidy

Government acknowledges those who participate in this campaign through  Scroll on Honour which is actually a list of people who have successfully opted out of subsidy.Once the process will complete, your name, Consumer number and other details will be visible online. This Scroll of honour section can be accessed from myLPG.in and is present just beside the Give up Subsidy Online option.

LPG scroll of honour for giving up LPG subsidy

LPG scroll of honour for giving up LPG subsidy

Related Articles:

This article explains how LPG cylinders are priced, why the prices of LPG cylinder vary, how to find price of LPG cylinder and subsidy deposited in your bank account. Are you planning to opt out of LPG subsidy ?programme.

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