Union Minister Pralhad Joshi on Monday expressed deep regret over the recent increase in domestic cooking gas (LPG) prices, stating that the hike was unavoidable due to the ongoing global energy crisis. The price of a 14.2-kg LPG cylinder was raised by Rs 29, effective from June 1, as state-owned fuel retailers continue to grapple with elevated global energy costs.
Government's Stance on LPG Price Revision
Addressing the media in New Delhi, Joshi said, "We are very sad and sorry, but the LPG price hike is inevitable due to the global crisis. The government is committed to providing relief to consumers, but we cannot ignore the harsh realities of the international market." He emphasized that the decision was taken after careful consideration of the rising input costs and the need to maintain the financial health of oil marketing companies.
Impact on Households
The price revision has sparked concerns among households already grappling with inflation. The Rs 29 increase translates to an additional financial burden of approximately Rs 174 per year for a typical family using one cylinder per month. However, the minister assured that the government is exploring measures to mitigate the impact on the common man.
- Subsidized LPG for poor households under the Ujjwala scheme remains protected.
- Non-subsidized consumers will bear the full brunt of the price hike.
- Retailers cite rising international crude oil prices as the primary driver.
Global Energy Market Dynamics
The global energy landscape has been turbulent due to geopolitical tensions, supply chain disruptions, and production cuts by major oil-exporting countries. Joshi noted that India imports nearly 60% of its LPG requirements, making it vulnerable to international price fluctuations. "We are in constant dialogue with producing nations to ensure stable supply and reasonable pricing," he added.
Future Outlook
Analysts predict that LPG prices may remain elevated in the near term unless global crude oil prices stabilize. The government is exploring options such as increasing domestic production, diversifying import sources, and promoting alternative fuels like piped natural gas (PNG) to reduce dependency on LPG. "We are committed to energy security and consumer welfare," Joshi concluded.
