New Delhi, Apr 1(UNI) Prices of commercial LPG cylinders were increased by Rs 195.50 on Wednesday, driven by a sharp rise in global oil and gas benchmarks amid the escalating situation in West Asia, according to state-owned oil marketing companies (OMCS).
Following the revision, a 19-kg commercial LPG cylinder will now cost Rs 2,078.50 in Delhi.
The hike is expected to impact restaurants, hotels, and other commercial establishments that rely heavily on bulk LPG supplies.
However, the price of domestic LPG cylinders has been kept unchanged. A 14.2-kg household cylinder continues to be priced at Rs 913, while beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to receive cylinders at Rs 613.
In a statement, the Ministry of Petroleum and Natural Gas said that prices of commercial LPG cylinders are deregulated and market-determined, and are typically revised on a monthly basis.
It noted that commercial LPG accounts for less than 10 per cent of the total LPG consumption in the country.
The Ministry attributed the April 1 price hike to a steep 44 per cent increase in the Saudi Contract Price (CP), which rose from USD 542 per metric tonne in March to USD 780 per metric tonne for April.
The surge has been linked to supply disruptions, with an estimated 20-30 per cent of global I.PG supplies impacted due to blockages in the Strait of Hormuz.
Despite stable retail prices, OMCs are currently incurring an under-recovery of around Rs 380 per domestic cylinder.
The cumulative losses are projected to reach approximately Rs 40,484 crore by the end of May, officials said.
The government highlighted that it has been absorbing a significant portion of these losses to shield consumers from global price volatility. In the previous financial year, total losses of around Rs 60,000 crore were shared equally between oil public sector undertakings and the Government of India.
The Ministry also noted that India’s domestic LPG prices remain among the lowest globally. In comparison, household LPG cylinders cost around Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal.
The latest revision comes amid continued volatility in global energy markets, with geopolitical tensions in West Asia exerting upward pressure on fuel prices.
