Domestic LPG prices have been increased by ₹29 per cylinder, marking the latest adjustment in cooking gas rates amid continued volatility in global energy markets. The revision affects millions of households and comes as oil marketing companies struggle to manage rising supply costs.
The government has attributed the increase to higher international LPG prices and substantial losses borne by fuel retailers. Officials said state-run oil companies have been selling domestic LPG below cost for an extended period, resulting in significant under-recoveries.
According to government estimates, oil marketing companies are losing nearly ₹700 on every domestic cylinder sold even after the latest price revision. The increase is expected to partially offset these losses while helping companies maintain stable supplies across the country.
Global LPG benchmark prices have witnessed a sharp rise in recent months due to changing market conditions and supply-demand factors. Since India imports a large share of its LPG requirements, fluctuations in international prices have a direct impact on domestic costs.
Government sources said the revision was necessary to balance consumer interests with the financial health of fuel retailers. They maintained that domestic LPG prices continue to be moderated compared with prevailing international rates.
The hike has triggered debate among policymakers, consumer groups and opposition parties. Critics argue that repeated increases in essential fuel prices place additional pressure on household finances and contribute to broader inflation concerns. They have urged the government to explore mechanisms that can reduce the burden on consumers.
Energy analysts note that pricing decisions in the LPG sector are increasingly influenced by global developments. Factors such as crude oil prices, international LPG benchmarks, currency movements and geopolitical events all play a role in determining domestic rates.
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