Efforts are being made to boost domestic LPG production and promote alternatives like PNG.

Domestic LPG price raised by Rs 29 per 14.2-kg cylinder, second increase in three months

The latest revision comes as state-owned oil marketing companies continue to struggle with mounting losses on fuel sales. Industry estimates suggest that before the latest increase, companies were losing around Rs 703 on every domestic LPG cylinder sold. Even with the fresh hike, the gap between selling prices and actual costs is not expected to be fully bridged.

by · India Today

In Short

  • Cooking gas price hiked by Rs 29 from June 7
  • Delhi LPG cylinder price rises from Rs 913 to Rs 942
  • Petrol, diesel and CNG prices also increased recently

Households will have to pay more for cooking gas from June 7, with the price of a 14.2-kg LPG cylinder increased by Rs 29, the second hike in three months amid continuing turbulence in West Asia that has pushed up global energy prices.

In Delhi, the price of a domestic LPG cylinder has gone up from Rs 913 to Rs 942. The increase follows a Rs 60 hike announced on March 7, shortly after the conflict in West Asia disrupted energy markets and sent international fuel prices soaring.

The latest revision comes as state-owned oil marketing companies continue to struggle with mounting losses on fuel sales. Industry estimates suggest that before the latest increase, companies were losing around Rs 703 on every domestic LPG cylinder sold. Even with the fresh hike, the gap between selling prices and actual costs is not expected to be fully bridged.

Cooking gas is not the only fuel that has become costlier in recent weeks. Petrol and diesel prices have risen by a cumulative Rs 7.50 per litre since mid-May, while CNG rates have increased by about Rs 6 per kg, reflecting the broader impact of higher global energy costs.

Despite these revisions, fuel retailers are still believed to be selling petrol and diesel below cost. Industry sources estimate losses of around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel, underscoring the strain on public-sector fuel companies.

The government has largely shielded consumers from the full impact of the global price surge, choosing not to completely pass on higher import costs. However, with international crude and fuel markets remaining volatile due to the ongoing West Asia conflict, pressure on domestic fuel prices continues to build.

- Ends
With inputs from PTI