Mumbai: Household budgets of the common citizens see another hit as the revised domestic LPG prices came into affect from Sunday, June 7, with hike of Rs 29 per cylinder. The latest price increase comes almost three months after oil companies spiked LPG prices by Rs 60 per cylinder on 7 March, following conflict in the Middle East disrupting global energy supplies.
Revised Rates Across Major Indian Cities
After the latest revision, 14.2-kg domestic LPG cylinder will now cost Rs 942 in Delhi, Rs 941.50 in Mumbai, Rs 994 in Hyderabad, Rs 968 in Kolkata and Rs 944.50 in Bengaluru.
This is the second hike in the domestic gas cylinder prices this year, and the total increase since the US-Isreal-Iran war began, is of Rs 89 so far.
Hotel and Restaurant Association Warns of More Hikes
Apart from the domestic LPG prices increased, the prices of commercial LPG has increased multifold, resulting around 15% prices hike in the hotel menu cards. The latest commercial LPG price increase was of Rs 46 on June 1.
Vijay Shetty, President of Indian Hotel & Restaurant Association said that the government is increasing the gas prices step by step, and considering the war situation in the middle East, the prices are most likely to increase more. "In January 2026, before the war started, the price of commercial LPG was Rs 1640, and as of June 1 it is Rs 3070. The highest increase was in April-May. The consumers have gradually started realising the Rs 1430 hike as the their resturant bills are soaring. Till date many middle-class Mumbaikar who are immigrants, rely of small eateries for daily food, and the hike has started hitting them now."
Homemaker Expresses Concern Over Chain Reaction
"A family now pays Rs 1400 for a lunch/dinner which was earlier Rs 1200. The hoteliers cannot absorb the price hike after a point, and increase in menu prices becomes unavoidable to sustain," Shetty added.
Manda Shete, a homemaker from Chembur said, "Although we feel Rs 89 hike in six months is not much, but considering that the war situation is heating up, there could be more hike in near future and household budgets, especially for lower-income groups will be hit hard. There will be chain reaction. We can observe gradually rise in basic commodities prices as well."
Strait of Hormuz Closure Disrupts Global Energy Supplies
The petrol and diesel prices have been raised by a cumulative Rs 7.50 per litre since mid-May, while CNG rates have gone up by about Rs 6 per kg.
The West Asia crisis, which started with the US-Isreal attacks on Iran on February 28, has resulted in the closure of the Strait of Hormuz, one of the world's most important energy transit routes, leading to disruptions in crude oil and LPG supplies from the region.
PMUY Beneficiaries to Continue Receiving Subsidy
However, the Centre on Sunday defended the latest increase in domestic LPG prices, saying Indian households continue to pay among the lowest cooking gas rates globally despite a sharp 46 per cent rise in international benchmark prices triggered by disruptions in West Asia. In a statement, the government said the cost of supplying a domestic LPG cylinder has climbed to over Rs 1,600 due to soaring global prices following the outbreak of conflict in West Asia and disruptions in the Strait of Hormuz, a critical shipping route for Gulf energy supplies.
Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will continue to pay an effective Rs 642 per cylinder after a subsidy of Rs 300 per refill on the first four refills annually. "What the household does not bear the brunt of is the several hundred rupees a cylinder which the government is bearing. Through a period of sharp international cost increases, that burden has been absorbed upstream rather than passed to the consumer," the statement added.
The hike in domestic LPG prices also saw sharp reactions from the opposition parties. Congress president Mallikarjun Kharge, slammed the BJP government for burdening households with rising cooking gas prices and questioned it's claims on fuel diversification and LPG accessibility; while NCP (SP) chief Sharad Pawar said that the government would pay a 'political price' as people across the country are facing hardship due to inflation, and frequent hikes in essential commodities.
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