Parliament Question: LPG Cylinders at Subsidised Rates to the Residents of Lakshadweep

**Executive Summary** This document is the answer to Unstarred Question No. 1120 in the Lok Sabha, regarding the provision of subsidized LPG cylinders to the residents of Lakshadweep, with a response date of February 5, 2026. It outlines the current distribution mechanism, pricing structure, and steps taken to ensure a seamless supply of LPG to the islands. It also acknowledges the receipt and review of representations regarding LPG prices. **Key Points / Main Content** * **Distribution Mechanism** * Indian Oil Corporation Limited (IOCL) distributes LPG in Lakshadweep through the Lakshadweep Co-operative Marketing Federation (LCMF). * LCMF acts as the wholesale agent under the Public Distribution System, designated by Lakshadweep Administration. * **Pricing Structure** * The retail selling price of domestic LPG at Kochi on February 1, 2026, was Rs. 860 per 14.2 Kg cylinder. * Lakshadweep's pricing is based on the Kochi market price, but includes additional transportation and handling charges passed on to the consumers by LCMF. * The retail selling price of domestic LPG in Lakshadweep islands is Rs. 1353.50 per 14.2 Kg cylinder (at Kavaratti). * Retail selling prices vary from island to island, reflecting the expenses incurred by LCMF for placement of cylinders. * The expenditure includes transportation, handling, and port charges worked out by LCMF. * **Ensuring Supply** * IOCL has hired two marine vessels, MV Elikalpeni and MV Ganga, to ensure seamless LPG supply to Lakshadweep islands. * IOCL bears the additional costs for placement of LPG cylinders. * **Representations** * The government has received representations regarding domestic LPG prices in Lakshadweep. * These representations are examined and acted upon per due process, in line with extant policies. **Impact Analysis** **Stakeholder: Residents of Lakshadweep** **Impact** * The residents of Lakshadweep are directly impacted by the pricing and availability of LPG cylinders. * They bear the additional transportation and handling charges, leading to higher LPG prices compared to the mainland. **Action Required** * Continue to pay the retail selling price as determined by the LCMF, which includes transportation and handling charges. * LPG consumers can continue to file representations to the government and cooperative society of each island on the prices of LPG cylinders. **Stakeholder: Lakshadweep Co-operative Marketing Federation (LCMF)** **Impact** * LCMF is responsible for the distribution of LPG and the determination of island-specific retail prices. **Action Required** * Continue to manage the distribution of LPG cylinders in Lakshadweep. * Maintain transparency in calculating and advising the incurred costs of each island. **Stakeholder: Indian Oil Corporation Limited (IOCL)** **Impact** * IOCL is responsible for the sourcing and transportation of LPG cylinders to Lakshadweep. **Action Required** * Continue to supply LPG to Lakshadweep islands through the established distribution mechanism. * Maintain the chartered vessels (MV Elikalpeni and MV Ganga) to ensure seamless placement of LPG cylinders.

Key Entities Referenced