LPG Price Today – June 21: Domestic & Commercial Rates in Delhi, Mumbai, Bengaluru, Kolkata, Hyderabad | Today’s news
LPG Prices Today, June 21: Domestic and commercial liquefied petroleum gas (LPG) cylinder prices remained stable on Sunday, June 20. LPG prices were unchanged from the last hike on June 7, marking the second increase in domestic LPG prices since the outbreak of the West Asian war on February 28. However, commercial LPG prices have increased by more than 79% in the same period after five revisions at regular intervals.
The price of a 19kg commercial cylinder has climbed ₹42 to ₹53.50 per cylinder, while it has gone up for a 14.2 kg domestic LPG cylinder ₹29 after the latest increase earlier this month. Geopolitical tensions in West Asia have severely disrupted energy supply chains due to the blockade of the Strait of Hormuz transit route.
State-owned oil marketing companies (OMCs) absorbed massive price shocks to protect domestic retail consumers and suffered severe under-recovery due to global oil price volatility. However, the recent easing of oil prices due to the US-Iran deal could potentially affect domestic fuel prices, the oil ministry said.
Will the government cut fuel prices with oil price cuts?
Speaking at an inter-ministerial media briefing on Thursday, Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma said, “As you know, the price of oil rose to USD 120 per barrel. Now it is coming down,” adding, “The government has taken up the matter and appropriate decisions on retail prices will continue to be taken in line with the evolving international situation,” reports ANI.
It is important to note that India imports nearly 85-90 percent of its oil requirements, with the Gulf countries being its key energy suppliers. India, one of the world’s largest energy importers, has been heavily dependent on supplies passing through the Strait of Hormuz, a major export route for Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar. About 90 percent of its LPG imports came from West Asia.
During the conflict, India sharply diversified its LPG supply by increasing imports from the US, Iran and several other countries to reduce dependence on the Gulf region. According to a Crisil report, India sourced one-third of its LPG imports from the United States.
At that time, Argentina, Chile, France and the Netherlands also entered the import basket. But that compromise came at a cost as Saudi Aramco’s contract price, the benchmark for Indian imports, rose 46 percent between February and June. Fuel sellers thus suffered cumulative losses in the amount of ₹22,000 crore during March-May.
India’s top refiner Indian Oil Corp (IOC) on Thursday issued tenders to charter vessels to lift liquefied petroleum gas and crude oil from ports in the Strait of Hormuz, Reuters reported. Between June 30 and July 4, the IOC seeks to pull LPG from the ports of Ras Laffan in Qatar, Mina Al Ahmadi in Kuwait or Ruwais in the UAE. The next day, Reliance CEO Anant Ambani said the company had increased LPG production fourfold due to the conflict in West Asia to meet national needs, PTI reported.
