The domestic kitchen budget has faced a significant blow as the prices of domestic Liquefied Petroleum Gas (LPG) cylinders have been increased by 29 rupees per cylinder. This price hike comes into effect from today, June 7, across the country. The decision follows a continuous rise in global energy market prices, which has posed persistent challenges for government-owned fuel retailers. 2 kg LPG cylinder in Delhi will rise from 913 rupees to 942 rupees starting today. This adjustment is expected to impact millions of households that rely on these cylinders for their daily cooking needs.
Impact of Global Conflicts on Energy Prices
Speculations regarding an increase in LPG prices had begun alongside the rising costs of petrol and diesel. Despite the supply disruptions caused by the conflict involving Iran, Israel, and the United States that started on February 28, domestic LPG prices had remained unchanged until now. This latest revision marks the second increase in three months. Previously, a hike of 60 rupees per cylinder was implemented on March 7, following global energy supply disruptions and international fuel price surges due to the conflict in West Asia. Sources indicate that prior to this latest revision, government oil marketing companies were incurring a loss of approximately 703 rupees on every LPG cylinder sold, making the price correction inevitable for the retailers.
Previous Hikes in Commercial LPG Segments
While domestic prices were held steady for a period, the government had already increased the prices of commercial LPG cylinders in previous months. On May 1, commercial cylinder prices saw a massive jump of 993 rupees, while the 5 kg cylinder prices were increased by 261 rupees. Subsequently, on June 1, commercial cylinders became more expensive by another 42 rupees. The current hike in domestic cylinders reflects the mounting pressure of international market dynamics on the domestic sector, which had been shielded from the full impact of global price volatility for several weeks despite the ongoing geopolitical tensions.
Government Assurance on Supply and Reserves
Regarding the supply of LPG gas cylinders, the Ministry of Petroleum and Natural Gas issued an official statement confirming that the supply remains completely normal, while despite the ongoing global crisis, no retail gas agency has reported a shortage of gas. The ministry further emphasized that continuous action is being taken across the country to prevent hoarding and black marketing of LPG cylinders. To ensure uninterrupted availability of petroleum products and LPG despite the Hormuz crisis, the government has taken necessary steps. All refineries are currently operating at high capacity and maintain sufficient reserves of crude oil. On top of that, local LPG production within refineries has been ramped up to meet the demand and ensure that consumers don't face any scarcity during this period of price adjustment.