scorecardresearch
Add as a preferred source on Google
Wednesday, April 1, 2026
Support Our Journalism
HomeEconomyGovt hikes commercial LPG price amid global surge, shields households; regular petrol,...

Govt hikes commercial LPG price amid global surge, shields households; regular petrol, diesel rates same

Citing West Asia tensions & 44% jump in Saudi benchmark rates, Centre raises 19-kg cylinder rate but caps ATF hike, holds domestic LPG and auto fuel rates steady despite OMC losses.

Follow Us :
Text Size:

New Delhi: The Centre Wednesday raised prices of commercial liquefied petroleum gas (LPG) cylinders, citing a sharp surge in global benchmarks triggered by disruptions in West Asia and supply constraints through the Strait of Hormuz.

In a post on X, the Ministry of Petroleum and Natural Gas said: “April 1 price increase in Commercial cylinder price is due to a 44% surge in the Saudi Contract Price: from $542/MT in March to $780/MT for April, as 20-30% of global LPG supplies are stuck in Strait of Hormuz.”

The hike comes amid escalating geopolitical tensions in West Asia that have choked key energy routes, pushing up crude and gas prices globally over the past month.

The ministry noted that commercial LPG cylinders—primarily used by industries and hotels—are deregulated and revised monthly in line with market trends. Their consumption accounts for less than 10 percent of India’s total LPG usage.

Following the revision, the price of a 19-kg commercial LPG cylinder in Delhi has increased by Rs 195.5 to Rs 2,078.5.

However, the government has kept domestic LPG prices unchanged. A 14.2-kg household cylinder continues to cost Rs 913, while beneficiaries under the Ujjwala scheme remain protected from price volatility.

At current rates, oil marketing companies (OMCs) are incurring an under-recovery of Rs 380 per cylinder, with cumulative losses projected to reach Rs 40,484 crore by the end of May.

“India’s domestic LPG price remains one of the lowest in the world,” the ministry said, comparing rates with neighbouring countries.

In a separate post, the ministry clarified that prices of regular petrol and diesel have also been left untouched despite the global surge.

“Regular petrol and diesel prices… are unchanged,” it said, even as international petroleum prices have risen “by up to 100% in the last one month”. OMCs are currently incurring under-recoveries of Rs 24.40 per litre on petrol and nearly Rs 105 per litre on diesel, it added.

“Every pump in India continues to offer regular petrol and diesel at unchanged prices, even as prices in countries all over the world have risen by 30-50%,” the ministry added.

In a separate post on X Wednesday, the ministry announced a 25% increase in aviation turbine fuel (ATF) prices in consultation with the ministry of civil aviation.

“In order to insulate the domestic travel costs… PSU Oil Marketing Companies… have passed only a partial and staggered increase of 25% (only Rs 15/litre) to the airlines,” the ministry stated, adding that foreign routes will bear the full hike in line with global prices.

The ministry added that due to closure of the Strait of Hormuz and extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100% on 1 April.

(Edited by Nida Fatima Siddiqui)


Also Read: Indian govt is scrambling to manage LPG shortage while denying it exists


 

Subscribe to our channels on YouTube, Telegram & WhatsApp

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular