Another Blow To Kitchen Budgets: Domestic LPG Cylinder Gets Costlier By Rs 29

New Delhi: Domestic cooking gas users across India will face higher monthly bills from June 7 after oil marketing companies raised the price of a 14.2-kg LPG cylinder by Rs 29. The fresh revision was the second increase in domestic LPG rates in just 3 months, and comes days after prices of the commercial cylinders were hiked amid rising inflation in groceries and fuel. The price hike for a standard household cylinder added around Rs 2.05 per kg.

In Delhi, the price of a 14.2-kg domestic cylinder will climb to Rs 942 from Rs 913, according to industry sources. The adjustment will be reflected immediately when consumers book their next refill through dealers or digital platforms.

The latest increase in domestic cylinder price followed a Rs 60 per cylinder hike announced on March 7, when geopolitical tensions in West Asia pushed global energy prices higher. Industry sources stated that even after the March revision, state-run fuel retailers were not able to recover the full cost of supplying subsidised domestic cooking gas. The cumulative impact of both hikes ämid volatile situation in the Middle East is now translating directly into kitchen budgets across the country.

Pressure From Global Energy Costs

The state-owned fuel retailers have been grappling with mounting losses due to elevated international energy prices and rising import costs. Before the latest revision, the companies were estimated to be losing around Rs 703 on every domestic LPG cylinder sold. Industry sources indicated that the earlier Rs 60 increase had only partly offset those losses, leaving a big gap between selling price and actual cost. The June hike is therefore being seen as an attempt to narrow that deficit, though officials acknowledge it will not fully bridge the shortfall.

The oil marketing companies remain under strain because crude oil and fuel markets continue to be volatile amid the ongoing conflict in West Asia. The government has so far avoided passing the entire burden of higher global costs to consumers, choosing instead to absorb part of the increase through public-sector retailers. However, with global benchmarks for propane and butane staying firm, pressure on domestic prices has continued to build.

Broader Fuel Price Increases

The cooking gas is not the only fuel turning costlier as since mid-May, petrol and diesel prices have also been increased by a cumulative Rs 7.50 per litre, while compressed natural gas (CNG) rates have risen by about Rs 6 per kilogram. Despite these revisions, industry sources said that the oil companies are still selling petrol and diesel below their actual cost, incurring losses of about Rs 11 per litre on petrol and Rs 33.6 per litre on diesel. The pattern reflected a bigger trend of energy prices moving upward as global supply chains remain unsettled.

Commercial LPG Also Costlier

The businesses that rely on bulk cooking gas have already felt the pinch. As of 1 June, a 19-kg commercial LPG cylinder costs Rs 3113.50 in Delhi and Rs 3255.50 in Kolkata. The jump has been attributed to supply disruptions and rising global costs, affecting restaurants, hotels and small eateries that depend heavily on LPG. The higher input costs for these enterprises add to operating expenses at a time when consumer spending is cautious.