In a significant development, the price of a 14.2-kg domestic liquefied petroleum gas (LPG) cylinder in Delhi has been increased by ₹29, marking the second price hike in three months. This adjustment raises the cost from ₹913 to ₹942 per cylinder, effective immediately. The previous increase of ₹60 was implemented on March 7, following disruptions in West Asia that led to a surge in international fuel prices. ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
**Impact on Consumers**
The recent price hike has reignited discussions on inflation and its impact on households. The Congress party has been particularly vocal, accusing the Narendra Modi government of imposing additional financial burdens on families already facing rising living costs. In a statement on social media platform X, the party remarked, “‘Inflation Man Modi’ has cracked the whip again. Now the domestic gas cylinder has been made 29 rupees more expensive. Modi’s formula is clear, extort from the public, fill the coffers of rich friends.” ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
Punjab Congress chief Amarinder Singh Raja Warring also criticized the increase, stating, “This time, the LPG cylinder will cross ₹1,000. Every family is suffering under inflation. Are these the ‘achhe din’ promised by the Modi government?” ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
**Government’s Response**
In response to the criticism, the government has defended the price adjustment, emphasizing that Indian consumers continue to pay among the lowest cooking gas prices globally. The Petroleum Ministry highlighted that the cost of supplying a 14.2-kg LPG cylinder has risen to over ₹1,600, yet consumers in Delhi will pay ₹942 after the latest revision. For beneficiaries of the Pradhan Mantri Ujjwala Yojana, the effective cost is further reduced to ₹642 per cylinder, thanks to a direct benefit transfer of ₹300 on the first four refills each year. ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
The government also pointed out that despite the price increase, Indian households still pay significantly less than those in neighboring countries and advanced economies like the United States, Australia, and Canada. ([indiatoday.in](https://www.indiatoday.in/amp/india/story/lpg-price-hike-govt-says-india-cooking-gas-among-worlds-cheapest-2923119-2026-06-07?utm_source=openai))
**Global Factors Influencing the Price Hike**
The primary driver behind the recent price increase is the sharp rise in international LPG prices, attributed to disruptions in West Asia and the Strait of Hormuz. India imports over 60% of its LPG requirements, with domestic prices closely linked to international benchmarks, particularly the Saudi Contract Price. In February, before the crisis intensified, the Saudi benchmark stood at approximately $542.5 per tonne. Following the disruption of shipping routes through the Strait of Hormuz, the benchmark rose to $775 per tonne in April and further to $790 per tonne in June, marking a 46% increase since the pre-crisis level. ([indiatoday.in](https://www.indiatoday.in/amp/india/story/lpg-price-hike-govt-says-india-cooking-gas-among-worlds-cheapest-2923119-2026-06-07?utm_source=openai))
This surge in global prices has escalated the cost of supplying a domestic 14.2-kg LPG cylinder to over ₹1,600. Despite this, the government has stated that consumers in Delhi will pay ₹942 after the latest revision, with Ujjwala beneficiaries paying an effective ₹642 per cylinder. ([indiatoday.in](https://www.indiatoday.in/amp/india/story/lpg-price-hike-govt-says-india-cooking-gas-among-worlds-cheapest-2923119-2026-06-07?utm_source=openai))
**Financial Implications for Oil Marketing Companies**
State-owned oil marketing companies continue to absorb significant losses on every domestic LPG cylinder sold. Official estimates indicate that these companies are incurring losses of between ₹600 and ₹700 per cylinder. Industry estimates before the latest revision had placed losses at around ₹703 per cylinder. The Petroleum Ministry projected that the under-recovery on domestic LPG is expected to rise to approximately ₹60,000 crore in the 2025-26 financial year, compared to ₹41,338 crore in the previous year. ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
To mitigate part of this burden, the Union Cabinet has approved compensation of ₹30,000 crore for oil marketing companies. Additionally, the subsidy program for over 10.35 crore Ujjwala beneficiaries will continue unchanged, with each household receiving ₹300 per cylinder through direct benefit transfer. ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
**Broader Fuel Price Trends**
The increase in LPG prices comes amid a broader rise in fuel costs. Petrol and diesel prices have increased by a cumulative ₹7.50 per litre since mid-May, while compressed natural gas (CNG) prices have risen by around ₹6 per kg. Industry estimates suggest that oil companies continue to incur losses of around ₹11 per litre on petrol and ₹33.6 per litre on diesel despite recent increases. The government has maintained that it has deliberately avoided passing on the full impact of higher international energy prices to consumers. ([indiatoday.in](https://www.indiatoday.in/india/story/domestic-lpg-price-raised-by-rs-29-per-142-kg-cylinder-second-increase-in-three-months-2923060-2026-06-07?utm_source=openai))
**Conclusion**
The recent ₹29 increase in the price of a 14.2-kg domestic LPG cylinder in Delhi underscores the challenges faced by consumers and the government in balancing domestic energy needs with global market fluctuations. While the government asserts that Indian consumers continue to pay among the lowest cooking gas prices worldwide, the opposition remains critical, highlighting the financial strain on households. As global energy dynamics continue to evolve, it remains to be seen how these developments will influence future pricing and policy decisions.
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