New Delhi: In a move that is set to stretch household budgets further, state-owned oil marketing companies (OMCs) have announced a price hike of ₹29 per 14.2-kg cylinder for domestic Liquefied Petroleum Gas (LPG). The revised prices come into effect immediately from Sunday, June 7, 2026.

With this latest revision, the retail price of a non-subsidized domestic cooking gas cylinder in the national capital, Delhi, has climbed from ₹913 to ₹942. This marks the second substantial upward revision in domestic cooking gas prices in the last three months, following a major hike earlier this spring.

Cumulative Hike of ₹89 Hits Kitchen Budgets

The fresh increase of ₹29 follows a steep ₹60 per cylinder hike implemented on March 7, 2026. Cumulatively, domestic cooking gas prices have shot up by ₹89 per cylinder over a short three-month span.

Prior to March, domestic cylinder prices in Delhi had remained relatively stable at ₹853 through January and February. However, persistent macroeconomic pressures and geopolitical realignments have forced fuel retailers to pass part of the financial burden down to retail consumers.

What is Driving the Repeated Price Hikes?

According to industry experts and statements from the Ministry of Petroleum and Natural Gas, the primary driver behind the domestic price correction is the volatile global energy supply caused by ongoing conflicts in West Asia.

India remains heavily reliant on energy imports, bringing in roughly 88% of its crude oil and over half of its natural gas and LPG requirements. Much of these imports transit through vital sea lanes like the Strait of Hormuz, which has faced severe operational and logistical disruptions since late February.

Despite the back-to-back price hikes, officials emphasize that consumers are still heavily insulated from true market shocks:

• Massive Under-Recoveries: State-run oil marketing companies were losing an estimated ₹703 to ₹700 per domestic cylinder before this weekend's price adjustment.

• The Saudi Contract Price Gap: Ministry sources noted that if domestic retail prices were aligned 100% with the Saudi Contract Price (the global benchmark for LPG), a single standard 14.2-kg cylinder would cost retail consumers well over ₹1,600.

• Heavy Subsidies Maintained: The government continues to absorb a major chunk of the market cost. Non-Ujjwala regular cylinders are currently retailing at an estimated 45% discount compared to international import costs. For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the first four cylinders are heavily subsidized at ₹642, representing a massive 60% discount against international pricing.

Broader Inflationary Trends in Fuel Sector

The rise in cooking gas prices is part of a broader, compounding upward trajectory across India’s fuel and transport sectors over the past month.

Since mid-May, state retailers have steadily raised petrol and diesel prices by a cumulative ₹7.50 per litre, while Compressed Natural Gas (CNG) rates have risen by approximately ₹6 per kg.

Even with the recent additions, oil companies report they are still absorbing under-recoveries of roughly ₹11 per litre on petrol and over ₹33 per litre on diesel to prevent intense domestic inflationary spikes.

Meanwhile, commercial business operators continue to feel an even tighter squeeze. Commercial 19-kg LPG cylinders (used primarily by hotels and restaurants) saw a ₹42 increase on June 1, bringing the commercial cylinder rate in Delhi to a staggering ₹3,113.50, following sequential multi-hundred rupee hikes across March, April, and May.