LPG Price Hike: The Oil Marketing Companies (OMCs) have revised the price of LPG cylinders with effect from Saturday, March 7. The price of a 14.2-kg household cooking gas cylinder has been increased by Rs 60 across the country.
Additionally, the price of a 19-kg commercial LPG cylinder used by hotels, restaurants, and small businesses has also been increased by Rs 115 from March 7.
LPG Price Hike
The price of LPG cylinders has been increased from March 7, with a 14.2-kg household cylinder now priced at Rs 913 in Delhi, Rs 912.50 in Mumbai, Rs 939 in Kolkata, and Rs 928.50 in Chennai. The price of 19-kg cylinders, used by hotels, restaurants, and small businesses, has also been increased.
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Why OMCs Have Increased LPG Prices?
Speaking to news agency PTI, officials said the hike follows a sharp increase in global energy prices after the US-Israeli coordinated strikes on Iran escalated tensions in the Middle East. The conflict had nearly halted tanker movement through the Strait of Hormuz, a critical shipping route to export oil and gas to global markets.
The disruption has sharply curtailed the shipments of crude, LPG, and LNG from the region, triggering a steep increase in global oil and gas prices. US crude (WTI) jumped 35.6 per cent to USD 90.90 per barrel, Brent crude rose 28 per cent to USD 92.69, and Asian LNG prices more than doubled to USD 25.40 per MMBtu, the PTI report added.
LPG markets have tightened, pushing international propane and butane benchmarks higher. India relies heavily on imports via the Strait of Hormuz, with around 50 per cent of crude, 40 per cent of LNG, and 85-90 per cent of imported LPG transiting through the Strait of Hormuz.
Domestic production meets less than half of India's LPG demand. The government on Friday invoked sparingly used emergency powers to direct refineries to ramp up LPG production to ensure adequate availability across the country.