State-owned oil marketing companies increased the price of a 14.2-kg domestic LPG cylinder by Rs 29 across India on June 7, 2024 [1].
This price adjustment impacts millions of households and reflects the volatility of global energy markets, which forces domestic providers to balance operational costs against consumer affordability.
The price hike is the second increase in three months [3]. In Delhi, the cost of a domestic cylinder rose to Rs 942 from the previous rate of Rs 913 [2]. The revised pricing is effective in major urban centers, including Mumbai, Kolkata, Chennai, Bengaluru, and Hyderabad [4].
State-owned oil marketing companies, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, implemented the change [5]. These entities have faced significant financial pressure from rising global energy and input costs. Before this latest hike, oil marketing companies reported losses of approximately Rs 703 per cylinder [6].
The domestic increase follows previous volatility in the commercial sector. Earlier, the price of a 19-kg commercial cylinder saw an increase of nearly Rs 100 [7].
Oil marketing companies typically adjust rates based on the average cost of imports and global benchmarks. The repeated increases over the last quarter suggest a sustained upward trend in the cost of raw materials, a trend that has pushed state providers into heavy losses [8].
“Domestic LPG price increased by Rs 29 per 14.2-kg cylinder”
The frequent price hikes indicate that state-owned oil marketing companies are unable to absorb the rising costs of global energy imports. By passing these costs to consumers, the companies aim to reduce the massive per-cylinder losses that threaten their financial stability, though this increases the cost of living for the general population.
