Page 39 - FIPI - Policy Economic Report - May 2025

May 2025 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Policy developments/Significant news in Energy sector

Minister Hardeep S Puri chairs Consultative Committee Meeting on Petroleum & Natural Gas

Union Minister for Petroleum & Natural Gas, Shri Hardeep Singh Puri, while chairing the Consultative
Committee meeting of the Ministry of Petroleum and Natural Gas in Manesar, Haryana, highlighted
India's remarkable progress in energy affordability, access, and infrastructure development. He
underscored the government’s proactive measures in stabilizing fuel prices, expanding LPG coverage,
and boosting refining and distribution capacity across the country. Shri Puri reaffirmed the Ministry’s
commitment to inclusive and consumer-focused energy policies.

Minister of State for Petroleum & Natural Gas, Shri Suresh Gopi also attended the meeting, which
witnessed robust participation from 27 Members of Parliament. The MPs shared insightful suggestions
and feedback on key issues including fuel affordability, LPG access, regional infrastructure disparities,
and energy resilience.

The Minister Hardeep Singh Puri elaborated on how under the visionary leadership of Prime Minister
Shri Narendra Modi, India was able to successfully navigate geopolitical adversities to ensure
affordability and availability of energy for citizens without any shortage. He noted, when the fuel prices
were skyrocketing all over the world, India was the only country where the prices came down. Notably,
the Government reduced excise duties twice—on 4 Nov 2021 and 22 May 2022—slashing petrol by Rs
13/litre and diesel by Rs 16/litre. A recent hike in April 2025 was absorbed by Oil Marketing Companies,
protecting consumers from additional burden.

Highlighting LPG reforms, the Minister detailed the transformational impact of the Pradhan Mantri
Ujjwala Yojana (PMUY). Since its inception, LPG coverage has soared from 55% in 2014 to nearly
universal access today. LPG consumption rose significantly, with daily deliveries exceeding 56 lakh
cylinders. Over 25,000 LPG distributors now operate across the country, 86% in rural areas, ensuring
deep last-mile reach.

Shri Hardeep Singh Puri informed that LPG prices in India are among the lowest globally. Despite a steep
58% increase in international LPG prices, PMUY consumers now pay only Rs 553 for a 14.2 kg cylinder.

Oil companies have incurred a loss of Rs 40,000 crore last year to keep LPG prices affordable. A cylinder
costing approximately Rs 1,058 is being provided to PMUY beneficiaries at just Rs 553. For regular
consumers, the price is Rs 853. As a result, the per-day cooking cost comes to around Rs 6.8 for PMUY
households and Rs 14.7 for non-PMUY users.

Shri Puri informed that LPG prices in India are among the lowest globally. Despite a steep 58% increase
in international LPG prices, PMUY consumers now pay Rs 553 for a 14.2 kg cylinder—39% less than the
Rs 903 they paid in July 2023. Oil companies have incurred Rs 40,000 crore loss last year in order to keep
LPG prices low. Cylinder of approximately Rs 1058 cost is being sold at Rs 553 to Ujjwala consumers.

For regular consumers, the price is Rs 853. The per-day cooking cost is now around Rs 6.8 for PMUY
households and Rs 14.7 for non-PMUY users.

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