Govt Hikes Domestic LPG Prices By Rs 29, Second Rise In Prices Amid Supply Shocks Due To West Asia Tensions

The price of domestic liquefied petroleum gas (LPG) cylinders has been raised by Rs 29 effective June 7, 2026. This is the second time in a three-month period that state-owned oil marketing companies (OMCs) have increased the price of domestic cooking gas. At present, a 14.20 kg LPG cylinder in Delhi will cost Rs 942, effective June 7, up from Rs 913 previously.

This hike follows the Rs 60 per cylinder increase in prices on March 7 after the conflict in West Asia disrupted global energy supplies and drove up international fuel prices. Industry sources said that the increase had only partly offset losses incurred on domestic LPG sales.

State-run OMCs were estimated to be losing about Rs 703 on every LPG cylinder sold before the latest revision and have been under pressure from elevated import costs, leading to the latest adjustment in domestic cooking gas rates

The LPG price hike comes amid a broader round of fuel price increases. Petrol and diesel prices have been raised by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have increased by about Rs 6 per kg.

Despite the recent increases, oil companies continue to sell petrol and diesel below cost, incurring losses of around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel, according to industry sources. Brent crude oil prices are currently trading around $93 per barrel, over 28 per cent higher since the Iran war broke out in late February.

The government has so far avoided a full pass-through of higher international energy prices to consumers, absorbing part of the increase through state-owned fuel retailers as global crude oil and fuel markets remain volatile.

The price of 19-kg commercial LPG cylinders was also increased recently from June 1, 2026. They have increased five times since the conflict began in West Asia this February-end. The steepest increase came in April, when prices jumped by Rs 993 per cylinder.