Domestic LPG price rises by Rs 29 per cylinder, effective June 7

Domestic cooking gas LPG prices have been increased by Rs 29 per cylinder, marking the second hike in three months as state-owned fuel retailers continue to face elevated global energy costs.

The price of a 14.2-kg LPG cylinder in Delhi has been raised to Rs 942 from Rs 913 with effect from June 7, according to industry sources.

The latest revision comes after a Rs 60-per-cylinder increase on March 7 following the conflict in West Asia, which disrupted global energy supplies and pushed up international fuel prices. Industry sources said the earlier increase had only partly offset losses incurred on domestic LPG sales.

According to industry sources, state-run oil marketing companies were estimated to be losing about Rs 703 on every LPG cylinder sold before the latest price revision.

The increase in LPG prices comes amid a broader rise in fuel costs across the country.

Petrol and diesel prices have been increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have risen by about Rs 6 per kg.

Despite the recent revisions, industry sources said oil marketing companies continue to sell petrol and diesel below cost, incurring losses of around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.

The government has so far avoided a full pass-through of higher international energy prices to consumers, absorbing part of the increase through state-owned fuel retailers as global crude oil and fuel markets remain volatile.