New Delhi, June 7: In a fresh revision, the price of domestic cooking gas LPG has been increased by ₹29 per 14.2-kg cylinder, marking the second hike in three months, according to industry sources.
With the latest increase, the price of a domestic LPG cylinder in Delhi will rise from ₹913 to ₹942, effective June 7.
This revision follows a ₹60 per cylinder hike on March 7, which was implemented after disruptions in global energy supply due to geopolitical tensions in West Asia.
Officials said the latest increase only partially offsets the mounting losses being incurred by state-run oil marketing companies on domestic LPG sales.
Industry estimates suggest oil companies were earlier losing around ₹703 per LPG cylinder, even before the latest price revision.
Despite periodic hikes, state-run fuel retailers continue to sell domestic LPG at a loss, as the government absorbs part of the international price impact to shield consumers from sharp increases.
The LPG revision comes amid a wider surge in fuel prices across India:
- Petrol and diesel prices up by about ₹7.50 per litre since mid-May
- CNG prices increased by nearly ₹6 per kg
- Diesel losses estimated at ₹33.6 per litre
- Petrol losses estimated at ₹11 per litre
According to industry data, oil companies continue to operate under significant under-recovery pressure due to elevated global crude oil prices.
A report by rating agency Crisil warned that rising fuel prices could add further pressure on inflation, particularly through higher transport and manufacturing costs.
It estimated that a ₹7.5 per litre increase in petrol and diesel could push CPI inflation up by around 36 basis points, with a potential rise to 48 basis points if total hikes reach ₹10 per litre.
While global energy markets remain volatile, further price adjustments are likely if crude oil prices remain elevated, with economists warning of continued inflationary spillover effects across the economy.
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