Indian consumers are once again grappling with higher energy costs as LPG, CNG, and PNG prices saw a significant increase on June 12. This marks the second hike for domestic cooking gas in just three months, impacting household budgets nationwide.
Domestic LPG Cylinder Prices Climb
In Delhi, the price of a 14.2-kg domestic LPG cylinder rose by ₹29, reaching ₹942 from its previous ₹913. Similar increases were observed across major Indian cities:
- Bengaluru: ₹944.50
- Hyderabad: ₹994
- Mumbai: ₹941.50
- Chennai: ₹957.50
- Kolkata: ₹968
This revision follows a prior increase on June 7, exacerbating concerns over household expenditure.
Commercial LPG, CNG, and PNG Also See Hikes
Commercial 19-kg LPG cylinders also experienced a price adjustment on June 1. Delhi saw an increase of ₹42, bringing the price to ₹3,113.50, while Kolkata recorded a ₹53.5 hike, reaching ₹3,255.50. Other commercial rates on June 12 include:
- Bengaluru: ₹3,198
- Hyderabad: ₹3,367
- Mumbai: ₹3,067.50
- Chennai: ₹3,283
Prices for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) have also been updated:
CNG Prices per kg on June 12:
- Delhi: ₹83.09
- Bengaluru: ₹95
- Hyderabad: ₹97
- Mumbai: ₹86
- Chennai: ₹96
- Kolkata: ₹93.50
PNG Prices per SCM on June 12:
- Delhi: ₹47.90
- Bengaluru: ₹52
- Hyderabad: ₹51
- Mumbai: ₹50
- Chennai: ₹50
- Kolkata: ₹50
Global Factors Drive Price Increases
Industry sources indicate that these latest price adjustments only partially offset significant losses incurred by oil marketing companies on domestic LPG sales. Prior to this revision, companies were estimated to lose approximately ₹703 on each LPG cylinder sold.
The government attributes the rising cost of supplying domestic LPG cylinders, now exceeding ₹1,600, to international price surges linked to geopolitical tensions in West Asia. India's LPG import costs are directly tied to the Saudi Contract Price, which has escalated by about 46 percent since February due to ongoing supply disruptions in the Gulf region.
Union Minister Pralhad Joshi expressed regret over the latest gas price hike, stating it was unavoidable given the global situation. He emphasized the limited sources of LPG and the challenges in procurement and transportation, including higher costs stemming from extended transshipment times.
Ujjwala Yojana Subsidy Revised
In a related development, the government has adjusted the annual quota of subsidised cooking gas cylinders for beneficiaries of the Pradhan Mantri Ujjwala Yojana. The number has been reduced from nine to four, aligning support with average household consumption levels.
Praveen Mal Khanooja, Additional Secretary in the Ministry of Petroleum and Natural Gas, clarified that this revised entitlement matches the typical annual consumption of Ujjwala beneficiaries. He added that a targeted subsidy of ₹300 per 14.2-kg LPG cylinder is credited directly to beneficiaries' bank accounts after each refill, for up to 12 cylinders annually, aimed at promoting cleaner cooking fuel and improving affordability.
These combined changes—rising LPG, CNG, and PNG prices, along with revised subsidy policies—reflect the government's response to escalating international energy costs, constrained sourcing options, and global supply chain disruptions.