₹29 hike in LPG price: How much will your domestic 14.2kg cylinder now cost in Delhi, Bengaluru, Mumbai, Hyderabad, Kolkata | Today’s news
Domestic LPG prices have been revised and the updated rates will be effective from Sunday, June 7. After the last price increase ₹29 per cylinder, gas for home cooking is even more expensive. The latest price hike comes nearly three months after oil companies hiked LPG prices ₹60 per cylinder on March 7.
After the latest revision, a domestic LPG cylinder will now cost 14.2 kg ₹942 in Delhi, ₹941.50 in Mumbai, ₹994 in Hyderabad and ₹968 in Calcutta. However, domestic LPG rates remain the same in Bengaluru ₹915.50 per cylinder.
Why are the state’s fuel sellers at a loss?
The latest surge comes as global energy markets are disrupted by a blockade along the Strait of Hormuz, a vital trade route through which one-fifth of global oil and gas exports are carried. Fuel prices have been volatile around the world since the start of the US-Iran war on February 28, with Brent crude, the global oil benchmark, trading around $100 a barrel.
State-owned fuel retailers including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) continue to struggle with increased global energy costs. According to industry sources, the price hike in March was only partly to offset losses from domestic LPG sales, PTI reported.
Before the last revision, state oil marketing companies were estimated to be losing approx ₹703 on every LPG cylinder sold. The latest LPG price hike follows a wider round of fuel price hikes.
Gasoline and diesel prices have risen cumulatively since mid-May ₹7.50 per litre, while Compressed Natural Gas (CNG) rates have increased by approx ₹6 per kg. Oil companies continue to post losses of approx ₹11 per liter for petrol and ₹33.6 per liter of diesel despite recent hikes, according to industry sources. In the first few months of the conflict in West Asia, the government largely absorbed the rise in international energy prices, giving consumers a cushion to control inflationary pressures on other commodities.
On Thursday, Petroleum and Natural Gas Ministry Joint Secretary Sujata Sharma said the government has taken several steps to ensure adequate availability of LPG, including increasing domestic production and ensuring imports, at an inter-ministerial briefing.
“As far as the under-yielding LPG cylinder for home cooking is concerned, it is still in the range of nearly Rs 700,” Sujata Sharma was quoted as saying by ANI. Attributing the recent moderation in LPG demand to multiple factors, she cited 3 reasons, including lower consumption by commercial and industrial users, better booking cycles and technology-driven supply verification.
“There has been a reduction because our commercial and industrial LPG and another reason is the reservation time we have managed, I think 25 days and 45 days. And the third reason is the deliveries linked to DAC (Delivery Authentication Code),” she added.
