Household budgets are set to face additional strain as domestic cooking gas prices have been increased by Rs 29 per cylinder, marking the second revision in three months amid soaring global energy costs. Effective Sunday, June 7, the price of a standard 14.2-kg LPG cylinder in Delhi has risen to Rs 942 from Rs 913. This latest hike follows a Rs 60-per-cylinder increase announced on March 7, which was triggered by the conflict in the Middle East disrupting global energy supplies and driving up international fuel prices.
Industry sources indicated that the previous increase only partially compensated for the losses incurred on the sale of domestic LPG. Prior to the current revision, state-run oil marketing companies were estimated to be losing approximately Rs 703 on every LPG cylinder sold.
City-wise LPG Prices After the Hike
The revised prices vary across major cities. Below is the updated cost of a 14.2-kg LPG cylinder in key locations:
- New Delhi: Rs 942.00
- Kolkata: Rs 968.00
- Mumbai: Rs 941.50
- Chennai: Rs 957.50
- Gurgaon: Rs 950.50
- Noida: Rs 939.50
- Bhubaneswar: Rs 968.00
- Chandigarh: Rs 951.50
- Hyderabad: Rs 994.00
- Jaipur: Rs 945.50
- Lucknow: Rs 979.50
- Patna: Rs 1,031.50
- Thiruvananthapuram: Rs 951.00
Broader Fuel Price Trends
The increase in LPG prices is part of a wider trend of fuel price hikes observed in recent weeks. Since mid-May, petrol and diesel prices have risen by a cumulative Rs 7.50 per litre, while compressed natural gas (CNG) prices have increased by around Rs 6 per kg. However, industry sources noted that oil marketing companies continue to sell petrol and diesel below cost. The losses are estimated at approximately Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.
The government has so far refrained from passing on the entire impact of higher international energy prices to consumers, instead absorbing a portion of the burden through state-owned fuel retailers as global crude oil and fuel markets remain volatile.
Middle East Crisis and Global Energy Impact
The Middle East crisis, now ongoing for 99 days, shows no signs of abating despite peace efforts. The conflict began on February 28 after the US and Israel launched joint strikes on Iran. In retaliation, Iran squeezed the crucial Strait of Hormuz, an oil pipeline that carries 20% of the world's energy supplies. This disruption has pushed fuel prices higher, taking global crude beyond the $100-per-barrel mark from the $70 level before the war, sending ripples across economies worldwide.
