Domestic LPG prices were increased by ₹29 on Sunday, putting additional pressure on household budgets already affected by rising living costs.
The government has defended the hike, describing it as a difficult but unavoidable outcome of global energy disruptions and supply constraints. Union Minister Pralhad Joshi acknowledged public concern, saying international market conditions have made price control challenging.
“We also feel very sad and sorry about the hike in gas cylinder prices,” Joshi said, adding, “Before criticising, everyone should understand the situation in the entire world. The world is reeling under very serious crises.”
As Gold 101.3 FM, UAE’s No.1 Radio Station understands, the Centre attributed the increase to ongoing instability in global energy markets, particularly disruptions in West Asia that have tightened LPG supply chains and pushed up international benchmark prices.
Officials said geopolitical tensions have disrupted trade routes, forcing India to rely on alternative and longer supply chains. “No transshipment is happening, and LPG is available from a very limited number of sources,” the minister noted.
India, which imports a large share of its LPG, has seen rising procurement costs due to longer shipping routes, higher freight charges and increased insurance premiums linked to geopolitical risks and extended transit times.
The government said the combined impact of limited supply, higher logistics costs and elevated global prices has left little room to absorb losses. It added that the cost of supplying a domestic LPG cylinder has now crossed ₹1,600.
India’s LPG pricing is linked to the Saudi Contract Price (CP), a key global benchmark that has risen due to disruptions affecting major shipping routes, including the Strait of Hormuz. Authorities said this has directly influenced domestic price revisions.
