In a significant move affecting households across the nation, the price of domestic liquefied petroleum gas (LPG) has been increased by Rs 29 per 14.2-kg cylinder. This marks the second price hike in just three months, with the new rate coming into effect from Sunday. As a result, residents in Delhi will now have to pay Rs 942 for a cylinder, a rise from the previous cost of Rs 913.
This adjustment follows an earlier increase on March 7, when the price of domestic LPG cylinders saw a substantial hike of Rs 60. The ongoing conflict in West Asia has been cited as a major factor driving global energy prices upward, leading to mounting pressure on local suppliers. According to sources, state-run marketing companies were grappling with an estimated loss of Rs 703 on every cylinder sold before this latest price adjustment.
The pricing of domestic LPG is intrinsically tied to the fluctuations in international crude oil prices, which directly influence fuel costs and impact supply chain decisions in the energy sector. With India relying heavily on imports—approximately 88% of its crude oil and about half of its natural gas needs—the domestic market remains highly susceptible to global energy trends.
Compounding the situation, this latest hike in LPG prices comes amid a broader context of rising fuel costs across the country. Just recently, Indian Oil Corporation, the largest state-owned refiner and fuel retailer in India, increased the price of a 19-kg commercial LPG cylinder by Rs 42, pushing its cost in Delhi to Rs 3,113.5. Furthermore, petrol and diesel prices have seen an overall increase of Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) prices have risen by Rs 6 per kg, creating a stressful atmosphere for consumers.
As the price of essential commodities continues to rise, the burden on the common man is becoming increasingly evident. Many households are now faced with difficult decisions regarding their monthly budgets, as they grapple with the impact of these fuel price hikes on their overall cost of living. As the economy battles these challenges, the government and policymakers will need to carefully navigate the delicate balance between global influences and domestic affordability.
