Domestic LPG prices raised by Rs 29 per cylinder; 2nd hike since West Asia conflict began
New Delhi, June 7
Domestic cooking gas prices have been increased by Rs 29 per cylinder, marking the second hike in three months as state-owned oil marketing companies continue to face pressure from elevated global energy costs.
With effect from Sunday, the price of a 14.2-kg domestic LPG cylinder in Delhi has been raised to Rs 942 from Rs 913, according to industry sources.
The latest revision follows a Rs 60-per-cylinder increase announced on March 7 after the conflict in the Middle East disrupted global energy markets and pushed up international fuel prices. Despite that increase, oil marketing companies were reportedly unable to fully recover mounting losses on domestic LPG sales.
Industry sources said state-run fuel retailers were estimated to be losing around Rs 703 on every domestic LPG cylinder sold prior to the latest price revision. The fresh hike is expected to partially offset those losses, although companies are still believed to be under financial strain due to high import and supply costs.
The LPG price increase comes amid a broader rise in fuel prices across the country. Petrol and diesel prices have been increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have risen by around Rs 6 per kg during the same period.
According to industry estimates, oil companies continue to sell petrol and diesel below cost despite the recent revisions. Retailers are reportedly incurring losses of about Rs 11 per litre on petrol and Rs 33.6 per litre on diesel, reflecting the impact of higher global crude oil and refined fuel prices.
The government has so far refrained from allowing a complete pass-through of international energy costs to consumers. Instead, a portion of the burden has been absorbed by state-owned fuel retailers as authorities seek to balance inflation concerns with the financial health of oil marketing companies.
Global energy markets have remained volatile in recent months, with geopolitical tensions in the Middle East continuing to influence crude oil and fuel prices worldwide.
— IANS
Reader Comments
It's a tough situation globally, no doubt. But I wish the government would be more transparent about how much they're absorbing and why the hike is needed now. Also, can we please get more support for renewable energy? This dependency on imported LPG is hurting us in the long run.
😔 My mother was just saying yesterday how she's worried about cooking gas costs. For families like ours, every rupee counts. The subsidy cut has made things worse. I hope the government at least ensures that the Ujjwala beneficiaries don't suffer too much.
Honestly, this is the price we pay for instability in the Middle East. We're too dependent on other countries for our energy needs. The government has to accelerate efforts in green hydrogen, solar, and wind. Otherwise, we'll keep getting hit by such hikes every few months.
I've lived in India for work for a few years now. The LPG system is incredibly efficient compared to many countries, but these price hikes are still hard on people. It's a delicate balance between market realities and public welfare. I hope the situation improves soon.
Rs. 703 loss per cylinder before the hike? That's shocking. I get that OMCs need to be viable, but this just shows how much they were subsidizing us. The government should clarify their long-term strategy—are we moving toward market pricing or not? This piecemeal approach confuses everyone.
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