ibn sultan
New Delhi, June 7: Domestic cooking gas (LPG) prices have been increased by ₹29 per cylinder, marking the second hike in the last three months. The price of a 14.2-kg LPG cylinder in Delhi has risen from ₹913 to ₹942.
The increase comes as state-owned oil marketing companies face rising global energy costs due to the ongoing conflict in West Asia. Earlier, on March 7, LPG prices were raised by ₹60 following supply disruptions in the region.
Congress Criticises Government
The opposition Congress party criticised the price hike, accusing the government of adding to the burden of inflation on ordinary households. Party leaders said the increase would further strain family budgets already affected by rising costs of living.
Government Defends Move
The Central Government said Indian consumers continue to pay among the lowest LPG prices globally despite a sharp rise in international fuel costs.
According to the Petroleum Ministry, the actual cost of supplying a 14.2-kg LPG cylinder has crossed ₹1,600, while consumers in Delhi will pay ₹942 after the latest revision.
Beneficiaries of the will continue to receive a subsidy of ₹300 per cylinder on their first four refills each year, reducing their effective cost to ₹642 per cylinder.
Why LPG Prices Are Rising
India imports over 60% of its LPG requirements. The government said international LPG prices have surged due to disruptions in the Gulf region and around the Strait of Hormuz.
The Saudi Contract Price, a key global LPG benchmark, reportedly increased from around $522 per tonne in January to $775 per tonne in April, pushing up import costs significantly.
Oil Companies Facing Heavy Losses
The government stated that oil marketing companies are still absorbing losses of ₹600–700 per cylinder despite the latest increase. The projected under-recovery on domestic LPG sales is expected to reach ₹60,000 crore in 2025-26.
To help offset these losses, the Union Cabinet has approved ₹30,000 crore in compensation for oil marketing companies.
Broader Fuel Price Pressure
The LPG hike comes amid broader fuel price increases. Since mid-May, petrol and diesel prices have reportedly risen by a cumulative ₹7.50 per litre, while CNG prices have increased by about ₹6 per kg.
The government maintains that it has not passed the full impact of rising international energy prices on to consumers and continues to provide support through subsidies and compensation measures.
