Overview
- The government raised the price of a 14.2‑kg domestic LPG cylinder by Rs 29 to Rs 942 in Delhi effective Sunday, marking the second increase in three months and a cumulative Rs 89 rise since March.
- Officials said the move responds to a roughly 46% jump in the Saudi Contract Price after disruptions around the Strait of Hormuz pushed landed import costs above Rs 1,600 per cylinder.
- State‑run oil marketing companies have been absorbing heavy losses on household cylinders estimated at about Rs 700 each and cumulative under‑recoveries near Rs 60,000 crore, and the Union Cabinet approved Rs 30,000 crore to partly offset that burden.
- The government kept the Pradhan Mantri Ujjwala Yojana subsidy intact so eligible beneficiaries continue to receive a Rs 300 DBT on the first four annual refills, making their effective price about Rs 642 for those cylinders.
- To protect supplies the ministry ordered higher domestic LPG output, diversified imports from suppliers such as the US and Algeria, tightened booking and delivery OTP checks, and warned further price moves will track global benchmarks.