Domestic LPG prices have been raised by ₹60 per cylinder, as the government moves to cushion oil marketing companies from rising global energy costs triggered by escalating tensions in West Asia.
The price increase, which takes effect immediately, comes at a time when crude oil prices have surged amid the ongoing conflict involving West Asia, raising concerns about supply disruptions and higher import bills for energy-dependent countries like India.
With the latest revision, a 14.2-kg domestic LPG cylinder will cost ₹60 more across the country. The hike is expected to affect crores of households that rely on LPG for cooking, although beneficiaries of the government’s subsidy schemes may receive partial compensation through direct benefit transfers.
Domestic LPG prices had remained largely unchanged in recent months despite volatility in global energy markets. The latest increase signals that the government is now allowing oil marketing companies to pass on part of the higher import cost to consumers.
Global crude oil prices have climbed sharply in recent days following escalating geopolitical tensions in the Middle East. Concerns over possible disruptions to oil shipments and supply routes have pushed up benchmark prices and increased the cost of fuel imports for countries such as India, which relies heavily on overseas crude.
Higher crude prices directly affect the cost of LPG, which is produced during crude oil refining. As input costs rise, state-run oil companies face pressure to raise retail prices unless the government provides additional subsidies.
The ₹60 increase comes at a time when households are already dealing with elevated food prices and general inflation. LPG is a critical component of household expenditure, especially for urban and semi-urban families.
Analysts say that if global crude prices remain elevated for a prolonged period due to the West Asia conflict, further adjustments in domestic fuel prices could become unavoidable.
The government has historically intervened to cushion consumers from large swings in LPG prices through subsidies and price controls. However, rising global energy costs also strain public finances, particularly when oil prices remain high for extended periods.
Officials are therefore attempting to strike a balance between protecting consumers and preventing mounting losses for oil marketing companies.
With the geopolitical situation in West Asia still uncertain, energy markets are likely to remain volatile, raising the possibility of further price pressures on domestic fuels in the coming weeks.