The US-Iran war, now in its third month, continues to put upward pressure on oil prices as it disrupts the supply of one-fifth of global oil exports through the strategic waterway, the Strait of Hormuz.
As a result of fuel supply disruptions caused by the evolving situation in West Asia, commercial LPG prices in India have been revised for the third time since the start of the conflict on April 28.
Prices of commercial LPG – that used in hotels and restaurants – have increased ₹993 to a record high ₹3,071.50 per 19kg cylinder. Rates for 5kg FTL cylinder or LPG cylinder at market price have been increased ₹549 to ₹810.50 per bottle.
A 5kg FTL cylinder now costs just a shade less than a cylinder ₹913 rate for a 14.2 kg cylinder used in domestic kitchens (called domestic LPG).
Domestic LPG prices have increased ₹60 per 14.2 kg cylinder on March 7.
US naval operations to protect Indian LPG supplies
US Treasury Secretary Scott Bessent called the ongoing US-led naval operation a “humanitarian effort” aimed at protecting critical global supply chains, including LPG, vital to India’s daily cooking.
In an interview with Fox News, Bessent said the disruption in Hormuz threatens not only oil flows but also essential goods for vulnerable populations around the world.
“This is a humanitarian effort… it’s not just energy that’s there, it’s fertiliser, it’s food transport, it’s LPG for more than a billion people in India that they use for cooking,” he said.
‘No financial support plan for fuel dealers’: Govt
The price increase has not been enough to cover all the increased costs, and oil companies are seeing insufficient returns or losses. In the past, the government has covered insufficient LPG recovery through budgetary support.
“The government has not come up with any proposal to support the oil marketing companies (for their losses),” said Sujata Sharma, joint secretary in the petroleum and natural gas ministry.
Only bulk or industrial diesel rates have increased, as has commercial LPG – the kind used by hotels and restaurants.
Bulk diesel and commercial LPG make up only 10 percent of the fuel, she said. “Every effort has been made to protect consumers (by not increasing retail prices). The interest of consumers has been taken into account while deciding on the revision,” she said.
