The Indian government increased the price of domestic LPG cooking gas by ₹29 per 14.2-kg cylinder effective June 7, 2024 [1], [2].
This price adjustment impacts millions of households that rely on subsidized cooking gas. The move reflects the ongoing struggle of the state to manage domestic energy costs while global markets remain unstable.
In Delhi, the new price for a 14.2-kg domestic LPG cylinder is ₹942 [2]. This is an increase from the previous rate of ₹913 [2]. The Ministry of Petroleum & Natural Gas implemented the revision to partially offset losses incurred by oil marketing companies [1].
These companies have faced financial pressure due to the sale of subsidized cooking gas amid volatile global energy prices [1]. The price hike is the second such increase since the start of the U.S.-Iran war [2].
Government officials said the revision was necessary to maintain the viability of the distribution network. The adjustment ensures that oil marketing companies can continue providing essential fuel services despite the fluctuating costs of importing raw materials, a common challenge for the Indian energy sector.
“Domestic LPG prices raised by ₹29”
The price hike underscores the vulnerability of India's domestic energy market to geopolitical tensions and global price swings. By transferring some of the cost burden to consumers, the government is attempting to stabilize the balance sheets of oil marketing companies that are heavily impacted by the gap between international procurement costs and subsidized domestic retail prices.
