Government Defends LPG Price Hike, Says ₹700 Loss Incurred on Every Cylinder
Centre says domestic LPG prices in India remain among the lowest globally despite fresh hike, citing rising supply costs and Middle East disruptions.
The Central government has defended the latest increase in domestic LPG cylinder prices, stating that oil companies are incurring a loss of nearly ₹700 on every household cylinder supplied across the country.
From June 7, the price of a 14.2-kg domestic LPG cylinder has been increased by ₹29, taking the retail price in Delhi from ₹913 to ₹942. The hike comes amid rising global fuel costs and supply disruptions linked to tensions in the Middle East.
According to the government, the supply cost of a domestic LPG cylinder has now crossed ₹1,600, resulting in significant under-recovery for oil marketing companies. Officials clarified that this under-recovery is separate from subsidy support and refers to the gap between international procurement costs and the fixed retail selling price.
The government said domestic cooking gas prices in India continue to be among the cheapest in the world, including compared to neighbouring countries such as Pakistan, Nepal, Bangladesh, and Sri Lanka, as well as developed nations like the United States, Canada, and Australia.
This marks the second increase in domestic LPG prices in the last three months. Earlier, on March 7, prices were raised by ₹60 per cylinder following disruptions in global energy supplies due to geopolitical tensions in West Asia.
Officials also pointed to a sharp rise in Saudi Contract Prices (CP) — a benchmark for LPG pricing — which reportedly surged by nearly 46% between February and June 2026 due to reduced supply from Gulf nations amid disruptions around the Strait of Hormuz.
Despite the ongoing regional tensions, the government stated that India has managed to maintain uninterrupted movement of energy cargo through the Strait of Hormuz and assured citizens that there is no shortage of petroleum products in the country.
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