New Delhi: Domestic cooking gas has become more expensive from June 7 after state-owned oil marketing companies increased the price of a 14.2-kg LPG cylinder by Rs 29.
With the latest hike, the price of a domestic LPG cylinder in Delhi has risen to Rs 942 from Rs 913.
Second Hike Since March
This is the second increase in LPG prices in the last three months. Earlier, on March 7, oil companies had raised the price of a domestic LPG cylinder by Rs 60.
The previous increase came after tensions in West Asia disrupted global energy supplies and pushed up international fuel prices.
Oil Companies Continue to Face Losses
According to industry sources, the earlier price revision was not enough to fully offset the losses incurred by oil marketing companies.
Before the latest increase, state-run fuel retailers were estimated to be losing around Rs 703 on every domestic LPG cylinder sold.
Fuel Prices Rising Across Segments
The LPG price hike comes amid a broader increase in fuel prices across the country.
Petrol and diesel prices have risen by a cumulative Rs 7.50 per litre since mid-May, while CNG rates have increased by about Rs 6 per kg during the same period.
Petrol and Diesel Still Sold Below Cost
Industry sources said oil companies are still selling petrol and diesel below their actual cost.
The estimated loss stands at around Rs 11 per litre on petrol and Rs 33.6 per litre on diesel, despite recent price increases.
Government Absorbing Part of the Burden
The government has so far avoided passing on the full impact of higher international energy prices to consumers.
A portion of the increase in global fuel costs is being absorbed by state-owned oil marketing companies as crude oil and fuel markets continue to remain volatile.
