Domestic cooking gas prices have been increased by Rs 29 per cylinder, the second hike in three months due to elevated global energy costs faced by state-owned oil marketing companies. The price of a 14.2-kg domestic LPG cylinder in Delhi has risen to Rs 942 from Rs 913, effective from Sunday. This revision follows a previous increase of Rs 60 per cylinder on March 7, driven by disruptions in global energy markets.
The latest hike aims to offset some of the losses incurred by state-run fuel retailers, who were estimated to be losing around Rs 703 on each domestic LPG cylinder sold before the price revision. Despite this adjustment, companies are still grappling with financial strain from high import and supply expenses. The increase in LPG prices aligns with a broader surge in fuel prices nationwide, with petrol and diesel prices rising by Rs 7.50 per litre and CNG rates by about Rs 6 per kg since mid-May.
Oil companies are reportedly selling petrol and diesel below cost, with losses of approximately Rs 11 per litre on petrol and Rs 33.6 per litre on diesel. This situation reflects the impact of soaring global crude oil and refined fuel prices. The government has chosen not to pass on the full burden of international energy costs to consumers, opting instead to share the load with state-owned fuel retailers to balance inflation concerns with the financial stability of oil marketing companies.
Global energy markets have experienced volatility, influenced by ongoing geopolitical tensions in the Middle East, which continue to impact crude oil and fuel prices worldwide.
