India continues to offer one of the lowest LPG prices in the region, even as global fuel disruptions push up commercial cylinder rates for businesses and hospitality sectors.
Rows of LPG cylinders inside a distribution facility | IANS
Even as commercial LPG prices jumped sharply from April 1, the government on Wednesday underlined that India continues to offer the lowest LPG rates in the region, softening the blow of the global price surge.
The Ministry of Petroleum and Natural Gas said the latest increase is largely limited to commercial cylinders used by hotels and industries, while household users and regular fuel consumers remain shielded. The reassurance comes amid a spike in global energy prices triggered by supply disruptions.
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Commercial LPG prices are market-linked and revised monthly, the Ministry said, adding that this segment accounts for less than 10 per cent of total LPG consumption in India.
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The government attributed the increase to a sharp jump in international benchmarks. The Saudi Contract Price rose 44 per cent, from $542 per metric tonne in March to $780 per metric tonne for April. At the same time, 20 to 30 per cent of global LPG supplies are stuck in the Strait of Hormuz, tightening availability.
As a result, prices have risen across cities. In Delhi, a 19 kg commercial LPG cylinder now costs Rs 2,078.50 after an increase of Rs 195.50. A 5 kg cylinder has gone up by Rs 51 to Rs 549. Kolkata has seen an even steeper jump of Rs 218 for the 19 kg cylinder.
Despite this spike, the Ministry highlighted a key contrast. India’s LPG remains cheaper than neighbouring countries. Domestic LPG is priced at Rs 913 in India, compared to Rs 1,046 in Pakistan, Rs 1,242 in Sri Lanka, and Rs 1,208 in Nepal.
Officials stressed that domestic consumers continue to be protected. The price of a 14.2 kg household LPG cylinder remains unchanged at Rs 913 in Delhi, while PMUY beneficiaries pay Rs 613.
Oil marketing companies are currently facing an under-recovery of Rs 380 per cylinder. Total losses are expected to reach around Rs 40,484 crore by the end of May. Last year, losses worth Rs 60,000 crore were shared equally between oil PSUs and the government to cushion consumers.
On petrol and diesel, the Ministry said prices remain unchanged in Delhi at Rs 94.77 per litre and Rs 87.67 per litre, respectively, despite a sharp rise in global petroleum prices over the past month.
Only premium petrol variants such as XP95, Power95, and Speed have seen a Rs 2 per litre increase. These fuels make up just 2 to 5 per cent of total petrol sales and are typically chosen by motorists opting for higher performance.
The Ministry added that regular petrol and diesel, the fuels most Indians rely on, continue to be sold at stable prices, even as global fuel rates have risen by 30 to 50 per cent in several countries.
The latest move comes against the backdrop of rising geopolitical tensions, particularly around the Strait of Hormuz, a critical route for global oil and gas supplies.
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