Domestic LPG price rises by Rs 29 per cylinder; second hike in three months

Domestic cooking gas prices have been increased by Rs 29 per cylinder, with the revised rates taking effect from Sunday, June 7. The move marks the second increase in domestic LPG prices in the past three months as state-owned fuel retailers continue to face pressure from high global energy costs.

Following the latest revision, the price of a 14.2-kg domestic LPG cylinder in Delhi has risen to Rs 942 from Rs 913.

The increase comes after oil marketing companies raised LPG prices by Rs 60 per cylinder on March 7, citing disruptions in global energy markets linked to the conflict in West Asia.

Oil firms continue to face losses

Industry sources said the March increase had only partially compensated for losses on domestic LPG sales.

Before the latest revision, state-run oil marketing companies were estimated to be losing about Rs 703 on every domestic LPG cylinder sold.

The government has so far refrained from fully passing on higher international energy costs to consumers. Instead, part of the burden has been absorbed by state-owned fuel retailers as global crude oil and fuel markets remain volatile.

The LPG price increase also comes amid a wider rise in fuel costs.

Petrol and diesel prices have increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have risen by around Rs 6 per kg.

According to industry sources, oil companies continue to sell petrol and diesel below cost, with estimated losses of about Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.

Government cites steps to ensure supply

Speaking at an inter-ministerial briefing on Thursday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the government had taken several measures to maintain adequate LPG supplies, including boosting domestic production and securing imports.

Responding to questions from the media, Sharma said under-recoveries on domestic cooking gas cylinders remained significant.

She said losses on domestic LPG cylinders were still “in the range of almost Rs 700” per cylinder.

Sharma also pointed to a recent moderation in LPG demand, attributing it to several factors including lower consumption by commercial and industrial users, changes in booking cycles and the use of technology-based delivery verification.

According to the ministry official, measures such as managing booking intervals of 25 and 45 days, along with Delivery Authentication Code (DAC)-linked deliveries, had contributed to the reduction in demand.