Domestic LPG prices have been increased by Rs 29 per cylinder, marking the second hike since the West Asia conflict disrupted global energy markets. The latest revision raises the cost of a 14.2-kg LPG cylinder to Rs 942 in Delhi, amid rising fuel prices, mounting losses, and volatile global crude oil trends.
Domestic cooking gas consumers across India will now have to pay more for their LPG cylinders after state-owned oil marketing companies announced a fresh increase of Rs 29 per cylinder. The latest revision, which came into effect on Sunday, marks the second hike in domestic LPG prices within the last three months as rising global energy costs continue to exert pressure on fuel retailers.
Following the revision, the price of a standard 14.2-kg domestic LPG cylinder in Delhi has increased from Rs 913 to Rs 942. Industry sources said the decision was taken amid sustained financial pressure on oil marketing companies, which have been grappling with high import costs and elevated international fuel prices.
The latest increase follows an earlier hike of Rs 60 per cylinder announced on March 7. That revision came shortly after tensions and conflict in West Asia disrupted global energy supply chains, resulting in a sharp rise in crude oil and fuel prices across international markets. Despite the previous increase, oil companies reportedly continued to incur significant losses on domestic LPG sales.
According to industry estimates, state-owned fuel retailers were losing approximately Rs 703 on every domestic LPG cylinder sold before the latest price adjustment. While the new Rs 29 increase is expected to reduce some of the financial burden, it is unlikely to fully compensate for the losses faced by oil marketing companies.
The LPG price hike comes at a time when consumers are already facing higher fuel expenses. Petrol and diesel prices have witnessed cumulative increases of around Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) prices have risen by nearly Rs 6 per kilogram during the same period.
Industry experts note that the rising costs are largely linked to fluctuations in global energy markets, where crude oil prices remain volatile due to geopolitical uncertainties. Ongoing tensions in West Asia have continued to impact fuel supply expectations, leading to higher costs for countries dependent on energy imports.
Reports indicate that oil companies are still selling petrol and diesel below their actual procurement costs despite recent retail price revisions. Estimates suggest retailers are currently incurring losses of around Rs 11 per litre on petrol and approximately Rs 33.6 per litre on diesel. These losses have added further pressure on state-run oil firms, prompting periodic adjustments in fuel prices.
The government has so far attempted to shield consumers from the full impact of international energy price increases. Rather than allowing a complete pass-through of global fuel costs, authorities have permitted only partial revisions while state-owned retailers absorb a significant portion of the financial burden.
| Also Read: Big jump in LPG prices raises concerns for businesses nationwide |
Economists believe that while the latest LPG price increase may help improve the financial position of oil marketing companies, it could also contribute to inflationary pressures by increasing household expenditure. The impact may be particularly significant for middle-income and lower-income families that depend heavily on LPG for daily cooking needs.
With global energy markets expected to remain uncertain in the coming months, further developments in West Asia and international crude oil prices will likely play a crucial role in determining future fuel price trends in India. For now, consumers face another increase in household energy costs as oil companies seek to balance financial sustainability with market realities.
| Also Read: Jill Biden Reveals Challenges Behind PM Modi State Dinner |
