LPG Price Hike by ₹29: What your 14.2-kg domestic cylinder will cost now in Delhi, Bengaluru, Mumbai, Hyderabad, Kolkata
Domestic LPG prices have been revised and the updated rates come into effect from Sunday, 7 June. After the latest price hike of ₹29 per
Domestic LPG prices have been revised and the updated rates come into effect from Sunday, 7 June. After the latest price hike of ₹29 per cylinder, domestic cooking gas has become even more costly. The latest price increase comes almost three months after oil companies spiked LPG prices by ₹60 per cylinder on 7 March. After the latest revision, 14.2-kg domestic LPG cylinder will now cost ₹942 in Delhi, ₹941.50 in Mumbai, ₹994 in Hyderabad and ₹968 in Kolkata. However, domestic LPG rates remain the same in Bengaluru at ₹915.50 per cylinder. Also Read | Domestic LPG cylinder price hiked by ₹29; second increase in three months Check latest commercial and domestic LPG cylinder rates in your city here Why are state-owned fuel retailers incurring losses?
The latest increase comes on the heels of disruptions in global energy markets due to blockade along the Strait of Hormuz, an important trade route through which one-fifth of global oil and natural gas export takes place. Since the US-Iran war started on 28 February, the fuel prices across the globe have been volatile with Brent crude, the global oil benchmark, trading around $100 per barrel. State-owned fuel retailers, including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), continue to grapple with elevated global energy costs. According to industry sources, the price hike in March had only partly offset losses incurred on domestic LPG sales, PTI reported.
Before the latest revision, state-run oil marketing companies were estimated to be losing about ₹703 on every LPG cylinder sold. The latest LPG price hike follows a broader round of fuel price increases. Since mid-May, petrol and diesel prices climbed by a cumulative ₹7.50 per litre, while compressed natural gas (CNG) rates have risen by about ₹6 per kg. Oil companies continue to incur losses of around ₹11 per litre on petrol and ₹33.6 per litre on diesel despite the recent increases, as per industry sources. In the first few months of the West Asia conflict, the government had been largely absorbing the increase in international energy prices and provided a cushion to consumers to control inflationary pressure on other commodities.
On Thursday, Joint Secretary in the Ministry of Petroleum and Natural Gas, Sujata Sharma, said that the government has taken several steps to ensure adequate LPG availability, including increasing domestic production and securing imports while addressing an inter-ministerial briefing. "As far as the under recovery on LPG domestic cooking cylinder is concerned, it is still in the range of almost 700 rupees," ANI quoted Sujata Sharma as saying. Attributing the recent moderation in LPG demand to multiple factors, she mentioned 3 reasons including lower consumption by commercial and industrial users, improved booking cycles and technology-led delivery authentication.
The BriefWire