India LPG Price Rises ₹29 to ₹942 Per Cylinder, June 07

India raised domestic LPG prices by ₹29 per 14.2-kg cylinder on June 7, 2026, pushing the cost to ₹942 in Delhi. This marks the second hike in three months. The move reflects mounting pressure from global energy markets, where the Saudi Contract Price has jumped 46% since February. State-run oil firms continue absorbing heavy losses on subsidised cooking gas sales.

Why Prices Keep Rising

Global LPG benchmarks have surged sharply. The Saudi Contract Price climbed from $543 per tonne in February to $790 per tonne in June, a 46% jump. The actual cost of supplying a domestic LPG cylinder in India now exceeds ₹1,600. West Asia tensions and disruptions in the Strait of Hormuz—which carries 54% of India’s LPG imports—have pushed international costs higher. Prices were last hiked by ₹60 in March.

The Hidden Cost for Oil Companies

State-run oil marketing companies continue to lose money on every cylinder sold. Current under-recovery stands at ₹700 per domestic LPG cylinder. The government has allocated ₹30,000 crore to offset these losses, but industry analysts project total under-recoveries could reach ₹60,000 crore by fiscal year-end if global prices remain elevated. Unlike private global competitors, state firms cannot pass costs to consumers in real-time.

India Still Pays Less Than the World

Despite the hike, Indian consumers pay far below global rates. The government offers a 45% discount to international prices for non-Ujjwala cylinders and a 60% discount for Ujjwala scheme cylinders at ₹642 per unit. Cumulative price increases since February total ₹89 per cylinder. Commercial LPG and 5-kg cylinders remained unchanged on June 7.

What This Means for Households

Middle and lower-income families face rising cooking costs. Price increases vary by state due to local taxes and transport charges. In Delhi, the cylinder price rose from ₹913 to ₹942. The hike adds pressure on household budgets as global energy volatility persists. Future price movements depend on whether West Asia tensions ease and international benchmarks stabilise.

Final Thoughts

India’s ₹29 LPG hike reflects global energy shocks, not market failure. State oil firms absorb ₹700 per cylinder in losses, funded by government support. Investors should watch whether geopolitical tensions ease or escalate further.

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