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- Domestic LPG cylinder became costlier by ₹29, commercial increased by ₹42.
- Increase due to global supply constraints, losses of oil companies.
- The government would have given subsidy, yet the international cost crossed ₹1600.
LPG Rate Today on June 13: After increasing the prices on June 7 (Saturday) last week, the prices of domestic and commercial Liquefied Petroleum Gas (LPG) cylinders remained stable on Saturday, June 13.
The prices of domestic LPG cylinders in India have been increased by Rs 29. This is the second increase in three months. Earlier on March 7, the prices were increased by Rs 60. Apart from this, after the recent change in the prices of 19-kg cylinder, the price of commercial cylinder has been increased by about Rs 42. Due to problems in energy supply across the world, the prices of commercial LPG cylinders were changed for the fourth time on June 1.
City wise LPG prices
| City | domestic cylinder price | commercial cylinder price |
| Delhi | Rs 942.0 | Rs 3113.5 |
| Mumbai | Rs 941.5 | Rs 3067.5 |
| Kolkata | Rs 968.0 | Rs 3256.0 |
| Chennai | Rs 957.5 | Rs 3283.0 |
| Jaipur | Rs 945.5 | Rs 3141.0 |
| Lucknow | Rs 979.5 | Rs 3236.0 |
| Patna | Rs 1031.5 | Rs 3400.5 |
| Bhopal | Rs 947.5 | Rs 3119.0 |
| port blair | Rs 1018.0 | Rs 3544.0 |
Effect of war in Iran on LPG prices
According to data from the Oil Ministry’s Petroleum Planning and Analysis Cell (PPAC), LPG consumption has declined by 20% to 2.13 million tonnes this year. It is noteworthy that 90% of the LPG supply in India comes from imports, which is mostly sourced from the Middle East.
Due to supply chain disruptions in the Strait of Hormuz, pressure on international fuel prices has increased. Through the recent changes in the prices of petrol, diesel and LPG, the government has passed on some of the price pressure to consumers. Government oil marketing companies (OMCs) are incurring huge losses on the sale of every cylinder to protect consumers from fluctuations in oil prices due to the war.
Cheapest LPG in India
Recently, despite increasing the prices of 14.2-kg LPG cylinders for the second time in June, the central government claimed that cooking gas prices in India are the lowest in the world. The government said in a statement that due to the rise in international prices after the war, the cost of supply of domestic LPG cylinder has increased to more than Rs 1600.
The government also said that before the recent change in prices, OMCs were incurring a loss of about Rs 703 on selling every LPG cylinder. According to Praveen Mal Khanuja, Additional Secretary, Ministry of Petroleum and Natural Gas, the government is giving a subsidy of about Rs 700 to non-Ujjwala customers and Rs 1000 to Ujjwala beneficiaries. He stressed that based on the Saudi Contract Price (CP), the actual cost of a 14.2 kg cylinder is more than Rs 1600, but customers pay Rs 942.
Calling the recent change in prices a “very minor increase” compared to the loss (under-recovery) of Rs 700, Khanuja said the increase of Rs 29 means Rs 1 per day and for a family that uses 12 cylinders in a year, the expenditure is ’20 paise per day per family member’. The cost of LPG import in India is linked to Saudi CP, which is the global benchmark for this fuel. According to PTI report, this benchmark has increased by about 46% after the war affected the supply from the Strait of Hormuz.
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