Opinion: Opinion | Rs 1 Lakh Crore Gone, And Counting: Worse May Be Coming For India's Oil Shock
Cuts in central excise on petrol and diesel cost the Centre roughly $1.18 billion a month in forgone revenue.
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Cuts in central excise on petrol and diesel cost the Centre roughly $1.18 billion a month in forgone revenue.
Domestic cooking gas prices have increased by Rs 29 per cylinder, reaching Rs 942 in Delhi, marking the second revision in three months due to soaring global energy costs. This rise follows a previous Rs 60 hike and is part of a broader trend of fuel price increases, with petrol and diesel also seeing significant jumps.
Domestic cooking gas LPG prices have been increased by Rs 29 per 14.2-kg cylinder, according to PTI, citing sources. The price of a 14.2-kg domestic LPG cylinder in Delhi has risen from Rs 913 to Rs 942 with effect from June 7.The latest revision comes amid sustained volatility in international energy markets and follows a series of fuel price increases announced in recent weeks.LPG price todayMetroCurrent Price (Rs)New Price (Rs)Delhi913.00942.00Kolkata939.00968.00Mumbai912.50941.50Chennai928.50957.50LPG cylinder price rises to Rs 942 in DelhiThe increase takes the retail price of a standard 14.2-kg domestic LPG cylinder in Delhi to Rs 942.As per the PTI report, industry sources said the revision was necessary as oil marketing companies continue to incur substantial losses on the sale of subsidised domestic cooking gas.The hike follows an earlier increase of Rs 60 per cylinder announced on March 7 after tensions and conflict in West Asia disrupted global energy supplies and pushed up international fuel prices.Why has the LPG price been increased?According to industry sources, the previous increase only partially compensated oil companies for the losses they were incurring on domestic LPG sales.Before the latest revision, state-run fuel retailers were estimated to be losing around Rs 703 on every domestic LPG cylinder sold.Global crude oil and fuel prices have remained elevated in recent months, increasing the financial burden on oil marketing companies.The latest increase is aimed at reducing a portion of those losses, although companies are reportedly still selling LPG below cost.Fuel price hikes extend beyond LPGThe LPG price revision comes as part of a broader trend of rising fuel prices across the country.Petrol and diesel prices have been increased by a cumulative Rs 7.50 per litre since mid-May, while compressed natural gas (CNG) rates have risen by around Rs 6 per kilogram.The increases reflect the impact of higher international energy prices on India's fuel market.Oil companies continue to face lossesDespite the recent price revisions, industry sources said state-owned oil marketing companies continue to absorb significant losses.Petrol is reportedly being sold at a loss of approximately Rs 11 per litre, while diesel sales are resulting in losses of around Rs 33.6 per litre.These figures highlight the pressure on fuel retailers as they attempt to balance commercial viability with concerns over inflation and consumer affordability.Government limits full pass-through of global energy costsThe government has so far avoided passing on the entire increase in global energy prices to consumers.Instead, a portion of the burden has been absorbed by state-owned fuel retailers to shield households and businesses from a sharper rise in fuel costs.However, with global crude oil prices and fuel markets continuing to fluctuate, industry observers say further adjustments may be required if international prices remain elevated for an extended period.Impact of LPG price hike on householdsThe latest increase is likely to affect household budgets, particularly for families that rely heavily on LPG for daily cooking needs.Cooking gas remains an essential household fuel across urban and rural India, and any rise in cylinder prices tends to have a direct impact on monthly expenses.Consumers will now pay Rs 942 for a 14.2-kg domestic LPG cylinder in Delhi, while prices in other cities may vary depending on local taxes and transportation costs.Global energy market remains key factorGeopolitical tensions, crude oil supply disruptions and fluctuations in global demand continue to influence energy prices worldwide.As a result, domestic fuel prices are expected to remain closely linked to international market trends in the coming months.Inputs from PTI
As per Haryana's new rule, cab aggregators cannot add new petrol and diesel vehicles to their fleets.
Fuel prices were unchanged today on Wednesday, 3 June. The last fuel price hike was on Monday, 25 May, when oil marketing companies (OMCs) hiked both petrol and diesel prices by more than โน2.50 per litre.
Consumption of diesel and petrol in May rose 0.8% and 2.8% respectively from the comparable period last year.
Fuel prices remained largely unchanged on Tuesday, 2 June. The last fuel price hike was on Monday, 25 May, when oil marketing companies (OMCs) increased both petrol and diesel prices by over โน2.50 per litre.
Starting next April, carmakers must test new vehicle mileage with and without air conditioning, a move by the government to offer consumers more realistic fuel efficiency figures. This transparency aims to empower buyers' decisions. Existing models will receive an extended compliance period. The new norms apply to both petrol, diesel, and electric vehicles, reflecting India's distinct driving conditions.
The move pushes for greater energy security, cut in import bills and significant decarbonisation measures amid concerns of vehicle erosion and falling mileage
India's transport secretary V Umashankar announced a potential mandate for blending isobutanol with diesel this year to enhance energy security and decarbonise transportation.
Commercial LPG cylinder prices were raised by โน42 across major Indian cities on Monday, 1 June. Domestic LPG prices remained steady, despite a sharp, 10-day surge in petrol, diesel and CNG prices.
Fuel prices remained unchanged on Monday, 1 June. The last fuel price hike was on Monday, 25 May, when both petrol and diesel prices were increased by over โน2.50 per litre.
New Delhi: The price of 19-kg commercial LPG cylinders has been increased from June 1, raising input costs for hotels, restaurants and other commercial establishments, while domestic cooking gas rates have been left unchanged, according to industry sources.In Delhi, the price of a 19-kg commercial LPG cylinder has been raised by Rs 42 to Rs 3,113.50. In Kolkata, the increase is steeper at Rs 53.50, taking the retail price to Rs 3,255.50.The price revision comes amid heightened efforts by the government and oil marketing companies (OMCs) to strengthen fuel security and ensure uninterrupted availability of petroleum products across the country.Also read | Refiners adjust to new crude mix as Hormuz crisis tightens supplyIndustry sources said the price of 5-kg Free Trade LPG (FTL) cylinders has also been increased by Rs 11. Following the revision, a 5-kg FTL cylinder will cost Rs 821.50 in Delhi. The revised rates came into effect on June 1.There has been no change in the price of domestic LPG cylinders, providing relief to household consumers at a time when global energy markets continue to remain volatile.The latest revision follows the government's assurance that adequate stocks of petroleum products are available and that there is no shortage of LPG, petrol or diesel in the country.Speaking at an inter-ministerial briefing on Friday, Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said the government is working to bolster energy security through strategic reserves and enhanced inventory management.She said OMCs have been advised to maintain a minimum LPG reserve equivalent to 30 days of consumption and that efforts are underway to strengthen crude oil reserves as well.Also read | India cuts export duties on petrol, diesel and aviation turbine fuelAccording to Sharma, all refineries are operating at optimum levels and domestic LPG production has reached record highs. She said inventories of key fuels remain comfortable and no instances of LPG distributors running dry have been reported.At the same time, authorities have observed unusual spikes in fuel sales in several regions. While part of the increase is attributed to seasonal agricultural demand, bulk purchases have also contributed to higher offtake.Government data showed overall fuel sales growth exceeding 30%, with 14 districts recording more than 100% growth in petrol sales. In contrast, six districts witnessed a decline of about 38% in sales by OMCs.To prevent diversion and hoarding, enforcement agencies have intensified inspections. Over the past four days, around 6,500 raids were conducted involving LPG distribution networks, resulting in multiple FIRs and arrests. Separate inspections at retail fuel outlets led to the seizure of significant quantities of petrol and diesel, along with legal action against violators.Sharma said domestic refineries are currently producing around 50-52 thousand metric tonnes of LPG per day against demand of about 72 thousand metric tonnes, with the balance being met through imports. She added that the backlog in LPG supplies has narrowed to around 4.5 days, indicating an improvement in distribution efficiency.The increase in commercial LPG prices is expected to have a bearing on operating costs for eateries, catering businesses and other commercial users, even as household consumers remain insulated from the latest revision.
Party demands rollback of petrol, diesel and LPG price increase, blames Centre and State for burdening common people
According to Pakistan's local newspaper Dawn, the neighbouring country cut its petrol and diesel prices by PKR (Pakistan Rupee) 22 per litre on 29 May.