Household LPG Rates Hike by Rs 29 as Global Energy Costs Climb

Delhi cooking gas prices touch Rs 942; oil marketing companies face continued under-recovery

by The_unmuteenglish

NEW DELHI, JUNE 6: Domestic cooking gas prices rose by 29 rupees per cylinder on June 7, representing the second upward pricing adjustment within a three-month window as state-run fuel enterprises manage high international energy costs. The price revision shifts the retail cost of a standard 14.2-kilogram liquid petroleum gas cylinder in Delhi from 913 rupees to 942 rupees.

The recent price spike follows a 60-rupee-per-cylinder increase on March 7, which was triggered after intense conflict in West Asia disrupted shipping routes and international fuel supplies. Industry analysts noted that while the new retail prices bring some relief to suppliers, the current adjustment only partially offsets the substantial losses incurred on domestic gas sales.

Prior to this latest regulatory revision, state-owned oil marketing companies were losing an estimated 703 rupees on every individual cylinder distributed to the public. The pricing changes arrive during a broader period of rising energy costs across the transport and residential sectors, including a cumulative 7.5-rupee-per-liter increase for petrol and diesel since the middle of May, alongside a 6-rupee-per-kilogram rise in compressed natural gas rates.

Despite the recent consumer-end updates, energy firms continue to supply motor fuels below their actual procurement costs, absorbing deep losses of approximately 11 rupees per liter on petrol and 33.6 rupees per liter on diesel. The central government has chosen to prevent a full pass-through of global market shocks directly to the public, relying on state retailers to absorb the financial impact as crude markets remain volatile.

Industry representatives stated that regional geopolitical tensions remain the primary driver behind the domestic price shifts. They maintained that the gap between international procurement and domestic retail pricing remains substantial.

“The increase follows a 60-rupee-per-cylinder hike on March 7 after the conflict in West Asia disrupted global energy supplies,” an industry source noted during the price rollout. “The increase had only partly offset losses incurred on domestic LPG sales.”

Retail specialists declared that while the current adjustments are necessary for supply stability, the government continues to play an active role in cushioning consumers from the full brunt of global market volatility.

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