The Ministry of Petroleum and Natural Gas on Wednesday clarified that domestic LPG, petrol and diesel prices remain unchanged, despite a sharp rise in global fuel costs driven by geopolitical tensions, reported news agency IANS.
Only Commercial LPG Prices Increased
The government stated that only commercial LPG cylinder prices have been revised upward, as they are market-linked and deregulated. These cylinders are primarily used by hotels, restaurants, and industries, and account for less than 10 per cent of total LPG consumption in the country, reported IANS.
The recent hike follows a steep 44 per cent increase in global LPG benchmark prices, particularly the Saudi Contract Price, which rose from USD 542 per metric tonne in March to USD 780 for April, reported IANS.
Domestic LPG Prices Remain Protected
To shield households from rising international prices, the government has kept the cost of domestic LPG unchanged. A 14.2 kg domestic cylinder continues to be priced at Rs 913, reported IANS.
Under the Pradhan Mantri Ujjwala Yojana (PMUY), subsidised LPG cylinders for economically weaker sections remain available at Rs 613, ensuring affordability for vulnerable households.
Oil Companies Bearing Significant Losses
The Ministry highlighted that public sector oil marketing companies are currently incurring an under-recovery of around Rs 380 per LPG cylinder at existing prices. It added that cumulative losses are expected to reach over Rs 40,000 crore in the coming months, reported IANS.
In the previous year, total losses of approximately Rs 60,000 crore were shared equally between the government and oil companies to cushion consumers from global price shocks.
India Among Lowest LPG Prices Globally
Despite global volatility, India continues to maintain relatively low domestic LPG prices compared to neighbouring countries. The Ministry noted that LPG prices are significantly higher in countries such as Pakistan, Sri Lanka, and Nepal, reported IANS.
This pricing strategy is aimed at balancing consumer affordability with international market realities.
Petrol and Diesel Prices Remain Stable
Retail prices of regular petrol and diesel have also been kept unchanged. In Delhi, petrol continues to retail at Rs 94.77 per litre, while diesel is priced at Rs 87.67 per litre, reported IANS.
The Ministry said that despite a sharp rise in global petroleum prices—up by as much as 100 per cent in the past month—oil companies are absorbing significant under-recoveries at the retail level.
Premium Fuels Revised, Limited Impact on Consumers
The government clarified that recent price increases apply only to premium petrol variants such as XP95 and other high-octane fuels. These products are revised more frequently and account for just 2–5 per cent of total fuel sales, limiting their impact on the broader consumer base, reported IANS.
Global Disruptions Continue to Impact Markets
The surge in international fuel prices has been linked to supply disruptions, particularly around the Strait of Hormuz, a critical global oil transit route. These developments have increased import costs for countries like India.
Despite these pressures, the government emphasised that it remains committed to protecting consumers by keeping essential fuel prices stable, even as global markets remain volatile.
(With inputs from IANS)