India raises LPG prices again amid energy surge
India’s oil marketing companies have raised the price of domestic liquefied petroleum gas (LPG) by Rs 29 per 14.2 kg cylinder, marking the second increase in three months as the ongoing energy shock linked to the West Asia crisis continues to drive global fuel benchmarks higher.
The price of a domestic LPG cylinder for general consumers in Delhi has increased from Rs 913 to Rs 942 effective June 7, while the effective price for Ujjwala households has risen to Rs 642. The latest increase follows a Rs 60 per cylinder hike announced on March 7, 2026, News.Az reports, citing Business-Standard.
According to the ministry, the cost of supplying a domestic LPG cylinder has climbed to more than Rs 1,600, resulting in an under-recovery of around Rs 700 per cylinder. The ministry said the Saudi CP benchmark price for LPG has increased by 46 per cent since February 28.
The scale of the rise is reflected in the market-priced commercial LPG segment. A 19 kg cylinder used by hotels and restaurants is currently priced at Rs 3,113.50 in Delhi, equivalent to about Rs 164 per kg, after five increases during the West Asia crisis. By comparison, households pay around Rs 66 per kg following the latest revision.
The under-recovery, representing the gap between international LPG costs and regulated retail prices, is absorbed by public sector oil marketing companies and partially compensated by the government. By the end of the last financial year, cumulative under-recoveries on domestic LPG had reached Rs 60,000 crore, compared with Rs 1,338 crore a year earlier. The Union Cabinet has approved compensation of Rs 30,000 crore to the companies.
The LPG price increase follows rises in other fuels. Petrol and diesel prices have increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas prices have risen by around Rs 6 per kg.
The ministry said the conflict tightened conditions in the Strait of Hormuz, through which a significant share of India’s energy imports passes, bringing most commercial traffic in the waterway close to a halt. About 54 per cent of India’s LPG consumption was routed through the strait, leaving supplies directly exposed to the disruption.
It added that the effective Ujjwala price of the first four cylinders, at Rs 642, remains about 60 per cent below the actual international price of an LPG cylinder, while the non-PMUY price of Rs 942 is around 45 per cent below the international level.
By Leyla Şirinova
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