Domestic LPG prices have increased by Rs 29 per 14.2kg cylinder, a move that pushes the cost in Delhi to Rs 942 from Rs 913. This revision, effective June 7, marks the second price hike in three months as global energy supply strains continue. Nationwide, retail prices will fluctuate based on local taxes and transportation costs.
Why are energy prices rising?
The latest price adjustment is largely attributed to ongoing conflict in the Middle East, which has placed significant strain on global oil and gas supplies. This instability in West Asia has historically disrupted energy markets, leading to increased international fuel prices that eventually filter down to domestic consumers.
The Rs 29 increase is intended to address financial pressures on oil companies. Industry sources indicate that despite the recent hike, the adjustment only partially offsets the losses incurred on domestic LPG sales.
Broader impact on fuel costs
LPG is not the only fuel seeing a price surge. Since mid-May, petrol and diesel prices have risen by a cumulative Rs 7.50 per litre. Additionally, the cost of compressed natural gas (CNG) has increased by approximately Rs 6 per kg.
Despite these cumulative hikes, oil companies remain under pressure. Current estimates suggest that these firms are still selling petrol at a loss of roughly Rs 11 per litre, while diesel losses are significantly higher at Rs 33.6 per litre.
What may happen next
Given that current price hikes have only partially covered losses for oil companies, further adjustments to domestic fuel rates could be a possibility if global supply strains persist. Analysts may expect continued volatility in retail pricing as long as international energy markets remain affected by regional conflicts.
Frequently Asked Questions
How much does an LPG cylinder cost in Delhi now?
Following the June 7 revision, the price for a 14.2kg cylinder in Delhi is Rs 942.
Is the LPG price hike limited to Delhi?
No, the revision is nationwide. However, final retail prices vary by city due to differences in local taxes and transportation costs.
Are oil companies covering their costs with these price hikes?
According to industry sources, the increases only partially offset losses. Companies are still reportedly selling petrol and diesel below their actual cost.
How do you adjust your monthly household budget when essential fuel costs rise unexpectedly?
