New Delhi: Domestic cooking gas prices were hiked again on Sunday, with the cost of an LPG cylinder rising by ₹29, adding fresh pressure on household budgets already dealing with high living costs.
The government has defended the increase, calling it a difficult but unavoidable outcome of global energy disruptions.
Union Minister Pralhad Joshi acknowledged public concern over the latest revision, saying the government understands the impact on consumers but cannot ignore international market realities.
"We also feel very sad and sorry about the hike in gas cylinder prices," Joshi said.
"Before criticising, everyone should understand the situation in the entire world. The world is reeling under very serious crises."
The Centre has linked the repeated price hikes to continuing instability in global energy markets, particularly disruptions in West Asia that have tightened LPG supply chains and pushed up international benchmark prices.
According to the government, geopolitical tensions have disrupted established trade routes, forcing countries like India to source fuel from alternative and often more distant suppliers.
"No transshipment is happening, and LPG is available from a very limited number of sources," the minister said, highlighting supply constraints in the global market.
India imports a significant share of its LPG requirement, making domestic prices highly sensitive to global fluctuations. Officials said procurement costs have increased sharply due to longer shipping distances and higher freight charges.
Insurance premiums have also risen due to extended transit times and geopolitical risk, adding further pressure on landed fuel costs.
"Transportation costs are high, the base cost is also high, and insurance costs have increased due to 40â€"45 days of transshipment," Joshi explained.
The government argues that the combination of limited global supply, rising procurement costs, and elevated logistics expenses has left little flexibility to absorb losses indefinitely.
"We are also equally worried about the common man, but at the same time, the price hike is inevitable," Joshi added.
Oil firms under financial pressure
State-run fuel retailers have been struggling with mounting under-recoveries on domestic LPG sales due to the gap between retail prices and rising import costs. Prior to the latest revision, companies were reportedly losing hundreds of rupees per cylinder.
The government said the cost of supplying a domestic LPG cylinder has now crossed ₹1,600 in the current global pricing environment.
India's LPG import pricing is linked to the Saudi Contract Price (CP), a widely used international benchmark. Officials said the benchmark has risen sharply in recent months due to supply disruptions linked to geopolitical tensions around key shipping routes such as the Strait of Hormuz.
The government said the spike in benchmark prices has had a direct impact on domestic pricing decisions.
With PTI inputs