Kashmir Impulse Desk

New Delhi, June 7

The price of domestic cooking gas LPG has been increased by Rs 29 per cylinder, the second hike in three months, as state-owned fuel retailers continue to face pressure from elevated global energy costs, industry sources said.

The price of a standard 14.2-kg LPG cylinder in Delhi will rise to Rs 942 from Rs 913 with effect from June 7, the sources said.

The latest increase follows a Rs 60-per-cylinder hike on March 7, when disruptions to global energy supplies linked to the conflict in West Asia pushed up international fuel prices.

Industry sources said the March increase had only partially compensated oil marketing companies for losses on domestic LPG sales. Before the latest revision, state-run fuel retailers were estimated to be losing about Rs 703 on every LPG cylinder sold, they said.

The LPG price increase comes amid a broader rise in fuel prices across the country.

Petrol and diesel prices have been raised by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) prices have increased by around Rs 6 per kg.

Despite the recent revisions, oil marketing companies continue to sell petrol and diesel below cost, incurring estimated losses of about Rs 11 per litre on petrol and Rs 33.6 per litre on diesel, according to industry sources.

The government has so far refrained from fully passing on higher international energy costs to consumers, with state-owned fuel retailers absorbing part of the burden as global crude oil and fuel markets remain volatile.