Summary of this article
LPG prices continue to rise.
Induction requires higher upfront investment.
Savings depend on household usage patterns.
Indian households are feeling the impact of the rising global energy prices. Over the past few months, crude oil prices have climbed due to geopolitical tensions in the Middle East. These developments have raised concerns over supply disruptions. These disruptions are pushing up the costs of imported fuels. Since India relies heavily on energy imports, fluctuations in the international oil markets result in price rises of domestic fuel prices in India, especially for the liquefied petroleum gas (LPG). The primary cooking fuel for millions of families remains LPG, regardless of the alternatives provided in the market.
Recent LPG price hikes have added to the household expenses, with domestic cylinder prices rising for the third time in the past few months. In June itself, the costs have risen by Rs 29. At the same time, concerns over reduced subsidies and higher fuel costs add to the mental and financial stress of families. One option that has gained traction is opting for induction to replace the reliance on LPG. While inductions provide the comfort of greater convenience, safety and energy efficiency, the key question still remains if they can actually help families save money, as compared to LPG?
A Simple Assumption
Following the example of a family of four, based in Mumbai. They cook three times a day, and they plan on switching over to induction during this uncertain time. Here’s the upfront investment and the difference between the two cooking options.
“To switch completely to induction cooking, they would need a two-burner induction cooktop priced at around Rs 4,000 and induction-compatible cookware costing another Rs 3,000. The total upfront investment comes to approximately Rs 7,000. The family cooking three meals daily typically uses an induction cooktop for around three hours a day. Assuming an average power consumption of 1.5 kW, the cooktop would consume about 4.5 units of electricity per day, or roughly 135 units per month. At an effective electricity tariff of around Rs 9 per unit, monthly electricity expenses for cooking would be approximately Rs 1,215. That means the family's monthly cooking cost would rise from about Rs 950 on LPG to around Rs 1,215 on induction, a difference of nearly Rs 265 every month,” states CA Nishant Kumar.
The financial implications become even greater here when consistent use is weighed in. A year of LPG cooking would cost nearly Rs 11,400. On the other hand, induction cooking would cost nearly Rs 14,580 in electricity charges alone; an additional investment of Rs 7,000 is also present here. The cost difference is quite significant between the two.
Here’s What Users Believe
“When we compare LPG and induction cooking, I don’t think the decision can be based solely on the monthly fuel or electricity bill. Most households today are also looking at convenience, safety and long-term value. While an induction cooktop does require an upfront investment, especially if you need to buy compatible cookware, many families may find that the benefits start adding up over time. For instance, induction cooking is generally faster, easier to clean and doesn’t involve the uncertainty of waiting for a cylinder delivery. For working professionals and nuclear families, the time saved in daily cooking can be just as important as the money saved. At the same time, the economics will vary from household to household. That’s why consumers should look beyond the initial purchase cost and calculate the overall expense over a few years,” shares Durgesh Kumar Jha, PR Consultant in Delhi.
Here, a matter of convenience also has a say; most young professionals and nuclear families are accommodated in rental accommodations, which may make the users reliant on gas cylinders. Booking and waiting for one can become really difficult for such setups.
What Is Suggested?
“The initial cost of an induction cooktop, along with any necessary compatible cookware, is a critical factor because it represents an upfront investment. Budget-conscious consumers should calculate the payback period by dividing this total upfront expenditure by the projected monthly energy savings. If the monthly savings are minimal, it could take several years to break even on the initial purchase, thus reducing the immediate financial benefit,” says Abhishek Kumar, SEBI RIA and Founder at SahajMoney.
Ultimately, choosing between LPG and induction is a subjective decision, which weighs in on usability, number of consumers, budgeting, and consumption. If one prioritises convenience, induction might be an investment worth making, while large families who cook multiple times a day might find induction expensive as compared to LPG.
