India's LPG Cylinder Prices May Rise Again Due to Global Crude Oil Price Surge
The prices of domestic LPG cylinders may rise from August 1 due to increasing global crude oil prices, geopolitical tensions in the Middle East, and a weaker rupee. This would increase India's import bill for petroleum products.
Brent crude is trading above $87 per barrel, higher than levels seen a month ago. Over 60% of Indian households rely on LPG as their primary cooking fuel, so any price hike will likely affect household budgets.
Since the US-Iran conflict began in February, domestic LPG cylinder prices have increased by 10.43%, while commercial rates have risen by 19.42%. A 14.2-kg domestic LPG cylinder is currently priced at Rs 942 in New Delhi and Rs 944.50 in Bengaluru.
The sharp rise in crude oil prices is attributed to geopolitical uncertainty, rather than demand. Industry experts say that concerns over supply disruptions and fresh sanctions proposals targeting Russia's energy sector have added volatility to global energy markets.