Indian consumers are facing another increase in the price of domestic cooking gas, with a 14.2-kg LPG cylinder now costing Rs 29 more. This latest revision, effective June 7, pushes the price in Delhi to Rs 942, up from Rs 913.
Rising Fuel Costs Impacting Households
This is the second price increase for LPG cylinders within three months. The previous hike, a significant Rs 60 per cylinder, was implemented on March 7. These adjustments come as state-owned fuel retailers continue to contend with elevated global energy prices, exacerbated by geopolitical tensions, particularly the conflict in West Asia, which has disrupted international supply chains.
Industry sources indicate that even with these revisions, oil marketing companies are still incurring substantial losses on the sale of domestic LPG. Before the current increase, estimated losses stood at around Rs 703 per cylinder. The Rs 29 hike only partially mitigates these financial pressures.
Broader Fuel Price Increases Across India
The rise in LPG prices is part of a wider trend of increasing fuel costs across the country. Since mid-May, petrol and diesel prices have collectively risen by Rs 7.50 per litre. Similarly, compressed natural gas (CNG) rates have seen an increase of approximately Rs 6 per kilogram.
Despite these adjustments, state-run retailers are reportedly still selling petrol and diesel below cost, absorbing significant losses—estimated at Rs 11 per litre for petrol and Rs 33.6 per litre for diesel. The government has largely shielded consumers from the full impact of volatile international crude oil and fuel markets, with state-owned companies bearing a considerable portion of the burden.
The continued pressure on fuel retailers highlights the ongoing instability in global energy markets, driven by geopolitical factors and persistent supply concerns.