Household gas: the price of a 12kg cylinder increases from Rs190 to Rs250

This decision comes amid increasing pressure on public finances, linked to the high cost of the subsidy granted on domestic gas and to geopolitical tensions in the Middle East, according to the cabinet's statement.

According to data reviewed by the Cabinet, the actual average cost of a 12 kg gas cylinder is approximately Rs550, nearly three times the price currently paid by consumers. This difference is covered by a state subsidy, managed through the State Trading Corporation account.

However, this support mechanism places a heavy burden on public finances. The accumulated deficit in the STC subsidy account reached Rs1.9 billion over the period from June 2022 to June 2025. For the current financial year, estimates based on the 2025 price structure indicate that the total subsidy required for domestic gas could reach approximately Rs2.3 billion.

This situation could worsen. The government cites, in particular, geopolitical tensions in the Middle East, which could lead to a rise in international energy prices, and therefore further increase the cost of the subsidy.

Faced with this unsustainable trajectory, the Cabinet has decided to adjust the retail price, effective at midnight. The stated objective is to reduce the annual deficit in the subsidy account while maintaining a certain level of support for households.