NEW DELHI, June 7: India has increased the price of domestic LPG cylinders by 29 Indian rupees, marking the second hike in three months. The revised rates came into effect on Sunday, according to Indian media reports.
NOC hikes prices of LPG gas cylinder by Rs 200 and petrol, dies...
In Delhi, the price of a 14.2 kg LPG cylinder has risen from Rs 913 to Rs 942.
The latest increase follows a 60-rupee hike announced on March 7, taking the total increase in domestic LPG prices to 89 rupees within three months.
According to news agency PTI, oil marketing companies have justified the increase by citing higher global energy costs and losses incurred from domestic sales. Quoting sources, PTI reported that state-owned oil companies are currently losing nearly Rs 700 on every household LPG cylinder sold. The latest price revision is expected to offset only part of those losses.
Fuel prices have also risen in recent weeks. In May, petrol and diesel prices increased by Rs 7.50 per litre, while compressed natural gas (CNG) became costlier by nearly Rs 6 per kilogram. Oil companies reportedly continue to incur losses of around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.
Despite the recent hikes, the companies maintain that petrol and diesel are still being sold below cost. The government led by Prime Minister Narendra Modi has argued that consumers have not been made to bear the full impact of rising global energy prices, with state-owned oil firms absorbing part of the burden caused by higher crude oil costs.
International LPG prices remain the primary factor in determining domestic rates. The exchange rate of the Indian rupee against the US dollar also has a direct impact on pricing.
The final retail price includes import costs, transportation expenses, bottling charges and distribution costs. Oil companies determine LPG prices after assessing these factors along with prevailing market conditions, while government tax and subsidy policies also play a significant role in the pricing mechanism.
