Petrol and diesel prices in major Indian cities remained unchanged on April 23 even as global oil prices extended gains for the fourth straight day. The government has revised domestic LPG prices once, while commercial cooking gas rates have been revised twice in the last few months.
In particular, the government increased the price of a 14.2 kg domestic LPG bottle ₹60 in March. However, no rate revisions have been made since then, keeping domestic LPG prices stable across the country.
Meanwhile, the price of a 19 kg commercial LPG cylinder was first increased ₹144 in March, followed by another hike of almost ₹200 on 1st April. The double hike has hit diners, restaurants and other businesses that rely on the fuel for their day-to-day operations hard.
Why have LPG rates been increased?
The government raised the prices of both domestic and commercial LPG cylinders following the outbreak of conflict in West Asia on 28 February. Supply shortages have driven up rates due to disruptions in the Strait of Hormuz, a key shipping route for energy supplies.
Tensions around the waterway heightened after Iran briefly opened the Strait of Hormuz on Friday, only to reverse course within hours. Following the announcement, the United States imposed a blockade on vessels entering or leaving Iranian ports. Shipping activity across the strait has fallen sharply since the start of the Iran conflict.
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Dozens of commercial vessels passed through the strait before Iran closed the passage again, later warning that any ship approaching would be considered a target. According to marine tracking company Kpler, only four ships have passed in either direction since Sunday.
Meanwhile, the government plans to introduce a fuel price stabilization mechanism to protect consumers from sharp jumps in petrol, diesel and LPG prices amid heightened global energy volatility, NDTV reported, citing government sources.
Check LPG prices for the city on April 23
CityDomestic (14.2 Kg)Commercial (19 Kg)New Delhi ₹913.00 ₹2,078.50 Calcutta ₹939.00 ₹2,208.50 Bombay ₹912.50 ₹2,031.00 chennai ₹928.50 ₹2,246.50 Gurgaon ₹921.50 ₹2,096.50 Noida ₹910.50 ₹2,078.50 Bengaluru ₹915.50 ₹2,161.00 Bhubaneshwar ₹939.00 ₹2,245.00 Chandigarh ₹922.50 ₹2,099.50 Hyderabad ₹965.00 ₹2,320.50 of Jaipur ₹916.50 ₹2,106.00 Lucknow ₹950.50 ₹2,201.00 Patna ₹1,002.50 ₹2,353.50
How is India protecting households from rising energy costs?
According to Reuters, India plans to review fuel exports if needed to ensure availability in local markets. It also assesses fuel supply requirements from its neighboring countries and will only approve exports if it has surplus volumes.
The government also banned piped natural gas consumers from storing or refilling LPG cylinders and used emergency powers to direct refineries to maximize production of LPG, widely used for cooking. In addition, the center is also encouraging households and industry to switch to alternative energy sources to ease pressure on domestic fuel supplies and reduce dependence on imports. The development comes after global oil prices jumped above $100 a barrel during the West Asian crisis.
“LPG is under pressure and that is why consumers are repeatedly asked to switch to other available energy sources – PNG or electric stoves,” Sujata Sharma, Joint Secretary, Ministry of Petroleum, said at a media briefing on Monday.
