NEW DELHI, June 6: Domestic cooking gas LPG prices have been increased by Rs 29 per 14.2-kg cylinder, the second hike in three months, amid rising global energy costs.
With effect from June 7, the price of a 14.2-kg LPG cylinder in Delhi will increase from Rs 913 to Rs 942, industry sources said.
The latest revision comes after a Rs 60-per-cylinder increase on March 7, following disruptions in global energy supplies caused by the conflict in West Asia. Despite the earlier hike, oil marketing companies continued to incur substantial losses on domestic LPG sales.
According to industry estimates, state-owned fuel retailers were losing around Rs 703 on each LPG cylinder sold before the latest price revision. The increase is expected to partly reduce these losses.
The LPG hike is part of a wider rise in fuel prices in recent weeks. Petrol and diesel prices have been increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have gone up by around Rs 6 per kg.
Industry sources said oil companies are still selling petrol and diesel below cost, incurring losses of about Rs 11 per litre on petrol and Rs 33.6 per litre on diesel.
The government has so far refrained from passing on the full burden of higher international fuel prices to consumers, with state-owned retailers absorbing a portion of the increased costs amid continued volatility in global energy markets. (Agencies)
