BackECONOMY
High cost of five kg FTL cylinders keeps new consumers away
The report details that a fresh five kg free trade LPG (FTL) connection costs about ₹1,760, while a domestic 14.2 kg cylinder costs about ₹930. New five kg connections have been halted, with cylinders primarily issued to migrant workers, transferees, and newly-weds as a temporary measure, under instruction from state-run oil marketing companies.
Why It Matters
Rising costs and restricted access for new LPG connections could affect energy affordability and fuel choices for new consumers, reflecting policy and market responses to supply conditions.
Timeline
2 Events
May 4, 2026 article covers pricing and stop-gap policy for five kg FTL cylinders
May 4, 2026
The report states that a fresh five kg FTL connection costs around ₹1,760 including the cylinder, while a domestic 14.2 kg cylinder costs around ₹930. It notes that five kg FTL cylinders are being provided to migrant labourers, those coming on transfers, and newly-weds as a stop-gap arrangement, with distributors following the OMCs' instructions. The piece describes this as a temporary measure pending improvement in the situation.
Distributors halt all new five kg FTL cylinder connections
April 4, 2026
Distributors say they stopped issuing new five kg FTL cylinder connections about a month before May 4, 2026, following instructions from State-run oil marketing companies (OMCs). A distributor is quoted: 'It is a stop gap arrangement till the situation improves. We stopped all new connections a month back.'