New Delhi, Apr 01 (JKNS): The Union Ministry of Petroleum and Natural Gas of Government of India on Wednesday said that the recent increase in prices of commercial LPG cylinders is driven by global factors, while domestic consumers continue to be protected from price fluctuations.
In a post on X, the ministry, as per news agency JKNS, stated that prices of commercial LPG cylinders primarily used by industries and hotels are deregulated, market-linked and revised on a monthly basis. It added that such cylinders account for less than 10 percent of the total LPG consumption in the country.
The ministry attributed the April 1 price hike to a sharp 44 percent rise in the Saudi Contract Price, which increased from $542 per metric tonne in March to $780 per metric tonne in April, largely due to disruptions in global supply chains with a significant portion of LPG shipments affected in the Strait of Hormuz.
Reiterating the government’s commitment to shielding domestic consumers, the ministry said prices of the 14.2 kg domestic LPG cylinder remain unchanged at Rs 913, while beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) continue to get cylinders at Rs 613.
It further noted that oil marketing companies (OMCs) are currently facing an under-recovery of around Rs 380 per cylinder. The cumulative losses are projected to reach approximately Rs 40,484 crore by the end of May.
Highlighting past trends, the ministry said that last year total losses of around Rs 60,000 crore were equally shared between oil PSUs and the Government of India to cushion consumers from high international LPG prices.
The ministry also pointed out that despite global volatility, domestic LPG prices in India remain among the lowest compared to neighbouring countries, including Pakistan, Sri Lanka and Nepal. (JKNS)
