Household budgets are set to see another increase as domestic cooking gas prices have been raised by Rs 29 per cylinder, marking the second revision in three months as global energy costs continue to soar.From Sunday, June 7, the price of a 14.2-kg LPG cylinder in Delhi has increased to Rs 942 from Rs 913 earlier. The latest increase follows a Rs 60-per-cylinder hike announced on March 7, after the conflict in the Middle East disrupted global energy supplies and drove up international fuel prices.Industry sources said that the earlier increase had only partially compensated for losses incurred on the sale of domestic LPG. Before the current revision, state-run oil marketing companies were estimated to be losing around Rs 703 on every LPG cylinder sold.Also read: LPG sales down 19% year-on-year in May
LPG gets costlier: Here’s what a cylinder will now cost in your city
The rise in LPG prices is part of a wider trend of fuel price increases witnessed in recent weeks.Since mid may, petrol and diesel prices have gone up by a cumulative Rs 7.50 per litre, while compressed natural gas (CNG) prices have risen by around Rs 6 per kg.However, industry sources said oil marketing companies continue to sell petrol and diesel below cost. The losses are estimated at around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.The government has so far refrained from passing on the entire impact of higher international energy prices to consumers, instead absorbing a portion of the burden through state-owned fuel retailers as global crude oil and fuel markets continue to remain volatile.Meanwhile, the Middle East crisis has now been going on for over three months, showing no signs of slowing down despite peace efforts. The conflict began on February 28 after the US and Israel launched joint strikes on Iran. After the strikes, Iran retaliated by squeezing the crucial Strait of Hormuz, an oil pipeline that carries 20% of the world’s energy supplies. The disruption has pushed fuel prices higher, taking global crude beyond the $100-per-barrel mark from the $70 level before the war. Sending ripples across economies.
