Domestic LPG Cylinder Price Hiked by ₹29, New Rate ₹942 in Delhi

The price of domestic Liquefied Petroleum Gas (LPG) cylinders in India has been increased by ₹29 per 14.2-kilogram cylinder, effective from June 7, 2026. This latest revision raises the cost of a standard cooking gas cylinder in Delhi to ₹942, up from its previous price of ₹913. This marks the second such increase in a span of three months, highlighting the ongoing volatility in global energy markets. State-owned oil marketing companies (OMCs) have implemented this hike to partially mitigate the significant under-recoveries they face on the sale of domestic LPG. According to industry sources, prior to this adjustment, OMCs were estimated to be losing approximately ₹703 on every LPG cylinder sold. The government has, for a period, absorbed a substantial portion of the international price increases through these state-run retailers to cushion consumers from the full impact of global energy fluctuations. The primary drivers behind these escalating costs are elevated global energy prices, exacerbated by ongoing geopolitical tensions and conflict in West Asia. This instability has disrupted global energy supplies, leading to increased international fuel prices, which inevitably affect import-dependent nations like India. A significant portion, around 90%, of India's LPG imports pass through the Strait of Hormuz, making the country particularly vulnerable to supply disruptions and increased shipping costs stemming from such conflicts. This current ₹29 increase follows a more substantial hike of ₹60 per cylinder that was implemented on March 7, 2026. The consistent upward trend in LPG prices is part of a broader pattern of rising fuel costs across the country. Since mid-May, petrol and diesel prices have also seen a cumulative increase of ₹7.50 per litre, while compressed natural gas (CNG) rates have risen by approximately ₹6 per kilogram. Despite these multiple revisions, industry sources indicate that oil companies continue to incur losses, selling petrol and diesel below cost, with estimated losses of around ₹11 per litre on petrol and ₹33.6 per litre on diesel. The impact of this LPG price hike is significant for millions of Indian households, directly affecting monthly budgets, especially for those who heavily rely on cooking gas for daily needs. Cooking gas is an essential household fuel across both urban and rural India, and any increase directly translates to higher household expenses. While the revised rates are effective immediately, prices may vary slightly across different cities due to variations in local taxes and transportation costs. Consumers are advised to check the precise rates with their local LPG distributors or through the portals of oil marketing companies. Despite these increases, the Ministry of Petroleum and Natural Gas stated today, June 7, 2026, that Indian households continue to purchase cooking gas at prices significantly lower than those in neighboring countries and even advanced economies like the United States, Australia, and Canada. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) scheme, for instance, pay an effective ₹642 for a 14.2 kg cylinder, inclusive of a ₹300 per cylinder direct benefit transfer for the first four refills annually. Even non-PMUY consumers pay approximately ₹700 below the market-linked cost of the cylinder, with the government absorbing a substantial burden upstream rather than passing it entirely to the consumer. The government's strategy also includes efforts to boost domestic LPG production by instructing refineries to maximize output, aiming to meet increasing demand and reduce import dependency. However, global market dynamics, including demand fluctuations, supply chain disruptions, and the persistent geopolitical instability, continue to exert upward pressure on energy prices, suggesting that domestic fuel prices will remain closely tied to international trends in the foreseeable future. In summary, the ₹29 increase in domestic LPG cylinder prices is a verified fact, effective June 7, 2026, driven by global energy costs and OMCs' need to recover losses. While it impacts household budgets, the government continues to provide subsidies and absorb significant costs to keep consumer prices comparatively lower than international rates.

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