Government also feels 'very sad and sorry' over rising gas cylinder prices, says Union Minister Pralhad Joshi; lists reasons behind hike

Indian households are facing another squeeze on their budgets as the price of domestic LPG cylinder surged by Rs 29, effective June 7, 2026, marking a cumulative Rs 89 increase since March. Union Minister Pralhad Joshi conveyed the government's 'sad and sorry' sentiment, attributing the unavoidable hike to global energy disruptions, particularly the escalating West Asia crisis, which has triggered a spike in import, transportation, and insurance costs. This latest adjustment places the price of a 14.2 kg cylinder in Delhi at Rs 942, reflecting the persistent volatility in international energy markets. The ongoing conflict in West Asia, specifically the effective closure or restriction of the vital Strait of Hormuz, remains the primary destabilizing force, severely impacting the global supply chain for crude oil and LPG. India, a nation heavily reliant on imports—with 90% of its LPG passing through this critical maritime choke point prior to the crisis—is particularly vulnerable. The ensuing surge in international crude oil and LPG benchmark prices, coupled with significantly elevated freight and war risk insurance premiums, has pushed the actual cost of supplying a domestic cylinder to over Rs 1,600, leading to substantial under-recoveries for state-run Oil Marketing Companies. Looking ahead, the government faces sustained pressure to balance consumer welfare with the financial health of OMCs, potentially leading to further modulation of energy subsidies, which are projected to grow in FY26 and FY27. While India has actively diversified its crude oil and LPG sourcing and ramped up domestic production, the geopolitical landscape and its impact on shipping lanes will continue to dictate price stability. Policymakers are also promoting a long-term shift towards renewable energy solutions, like solar-powered induction cooktops, to bolster India's energy security and reduce reliance on volatile fossil fuel imports.