Domestic cooking gas prices have been raised by ₹29 per cylinder, marking the second increase in three months as state-owned fuel retailers struggle with soaring global energy costs. With effect from 7 June, the price of a 14.2-kg LPG cylinder in Delhi rises to ₹942 from ₹913, according to industry sources. The latest revision follows a ₹60 hike announced in March after tensions in West Asia disrupted energy supplies and pushed up international fuel prices. Despite recent increases, oil marketing companies continue to incur significant losses on domestic LPG sales, with industry estimates suggesting retailers were losing around ₹703 on every cylinder sold before the latest price revision, with the March hike covering only a portion of those losses.
The aviation sector emerged as one of the biggest beneficiaries of July's fuel price revision, with oil marketing companies reducing Aviation Turbine Fuel (ATF) prices by ₹5 per litre, bringing domestic ATF prices down to ₹110 per litre. According to reports, this reduction follows a gradual cooling in international crude oil and jet fuel prices after energy markets stabilised in recent weeks. The cut is expected to provide financial relief to domestic airlines, for whom aviation fuel remains one of the largest operating expenses, accounting for nearly 40% of overall costs. While lower ATF prices improve the cost environment for airlines, passengers should not immediately expect cheaper tickets as airfares continue to depend on passenger demand, aircraft availability, route-specific pricing, competition and seasonal travel trends.
Commercial LPG users received the most significant relief from July's revisions, with oil marketing companies reducing 19-kg commercial LPG cylinder prices by up to ₹183.50. As reported, this marks the first reduction in commercial LPG prices this year, reversing a series of monthly increases that had steadily pushed operating costs higher between January and June. The revision provides welcome relief to restaurants, hotels, dhabas, caterers and thousands of businesses that rely on commercial cooking gas. Across major cities, the new prices include Delhi at ₹2,930 (down by ₹183.50), Lucknow at ₹3,052.50 (down by ₹183.50), Kolkata at ₹3,081.50 (down by ₹174), and Patna at ₹3,227. However, household consumers using the standard 14.2-kg domestic LPG cylinder were left waiting as prices remained unchanged.
The LPG increase comes amid a broader rise in fuel prices, with petrol and diesel rates climbing by a cumulative ₹7.50 per litre since mid-May, while CNG prices have gone up by about ₹6 per kg. Industry sources say state-run retailers are still selling petrol and diesel below cost, absorbing losses of around ₹11 per litre on petrol and ₹33.6 per litre on diesel. The government has so far avoided passing on the full burden of higher international energy prices to consumers, relying instead on state-owned fuel retailers to absorb part of the impact as global crude and fuel markets remain volatile. This approach contrasts with the previous strategy of passing on some of the burden through export duty adjustments.
The July revisions created clear winners and those waiting for relief. According to reports, cheaper items include Aviation Turbine Fuel (ATF), 19-kg commercial LPG cylinders, Nayara Energy petrol and diesel, and reduced diesel export duty. However, no change was announced for 14.2-kg domestic LPG cylinders, 5-kg Free Trade LPG cylinders, and petrol and diesel prices at Indian Oil, BPCL and HPCL outlets. The petrol export duty increase from ₹1.5 to ₹4 per litre represents a costlier development for some sectors. Consumers may not immediately notice benefits as lower ATF prices are expected to improve airline cost structures but not directly lower ticket prices, while restaurants and businesses may not immediately translate lower fuel costs into lower menu prices or service charges.
