India Hikes LPG Prices Again as Iran War Deepens Refinery Losses
(Bloomberg) -- India raised prices of domestic cooking gas for the second time since the Iran war started, to help state retailers cut losses on discounted fuel sales.
The price for a 14.2 kilogram liquefied petroleum gas cylinder has increased by 29 rupees (31 cents) nationwide, the government said in statement. All state refiners implemented the hikes.
The cylinder will now cost 942 rupees in New Delhi, according to website of Indian Oil Corp., the country’s largest refiner. The price of LPG for households that get a direct government subsidy of 300 rupees have also been raised.
Domestic LPG prices are determined by the federal government. State retailers sell cooking fuel below market prices and get compensated by the government.
The latest increase will further strain household budgets, already squeezed by hikes in transport fuel costs. India, which meets two thirds of its LPG demand via imports, has been worst hit by the conflict in Iran because 90% of the shipments came from Middle East.
The cost of supplying a cylinder has climbed to around 1,600 rupees, according to a government statement.
While the prices of domestic LPG are raised once or twice a year, those of commercial LPG, sold to restaurants and industries, are revised at the beginning of every month.
After the latest price hike, households will pay about 66 rupees a kilogram, while commercial LPG is priced at 164 rupees a kg, the statement said.
India last month raised prices of diesel and gasoline four times.
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