After the price increase on June 7 (Saturday), there was no change in the prices of domestic and commercial Liquefied Petroleum Gas (LPG) cylinders on June 13 (Saturday). In India, domestic LPG cylinder prices have been increased by ₹29. This is the second increase in three months; Earlier, on March 7, the prices were increased by ₹60. Additionally, after the recent changes, the price of a 19-kg commercial cylinder has increased by about ₹42. Commercial LPG cylinder prices were changed for the fourth time on June 1 due to disruption in global energy supply.
City Domestic Cylinder Price Commercial Cylinder Price Delhi 942.0 Rs 3113.5 Mumbai 941.5 Rs 3067.5 Kolkata 968.0 Rs 3256.0 Chennai 957.5 Rs 3283.0 Jaipur 945.5 Rs 3141.0 Lucknow 979.5 Rs 3236.0 Patna 1031.5 Rs 3400.5 Rs Bhopal Rs 947.5 Rs 3119.0 Port Blair Rs 1018.0 Rs 3544.0
**Impact of conflict with Iran on LPG prices**
According to data from the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC), LPG consumption has declined by 20% to 2.13 million tonnes this year. It is noteworthy that 90% of India’s LPG supply is imported, which mainly comes from the Middle East.
Supply chain disruptions in the Strait of Hormuz have put pressure on international fuel prices. Through recent changes in the rates of petrol, diesel and LPG, the government has passed on some of this price pressure to consumers. State-owned oil marketing companies (OMCs) are incurring huge losses on every cylinder sold to protect consumers from oil price fluctuations due to the conflict.
**Cheapest LPG in India**
Despite increasing the price of a 14.2 kg LPG cylinder for the second time this June, the central government has claimed that cooking gas prices in India are among the lowest in the world. In a statement, the government said the supply cost of a domestic LPG cylinder has gone up by more than ₹1,600 due to the rise in international prices following the clash.
The government further said that before the recent change in prices, OMCs were incurring a loss of about ₹703 on every LPG cylinder sold. According to Praveen Mal Khanuja, additional secretary in the ministry of petroleum and natural gas, the government provides a subsidy of around ₹700 to non-Ujjwala consumers and ₹1,000 to Ujjwala beneficiaries. He stressed that based on the Saudi contract price (CP), the actual price of a 14.2 kg cylinder is more than ₹1,600, yet customers pay only ₹942.
Khanuja described the recent price hike as a “very minor increase” compared to the ₹700 loss (under-recovery). He said the ₹29 increase means an additional expenditure of ₹1 per day, or “20 paise per household” for a family that uses 12 cylinders a year. The price of LPG import in India is linked to Saudi CP, which acts as the global benchmark for this fuel. According to a PTI report, this benchmark has increased by about 46% after the supply disruption from the Strait of Hormuz.
