We are witnessing a notable hike in domestic LPG cylinder prices, with an increase of ₹50 per cylinder across major cities in India. The revised price for a 14.2 kg LPG cylinder now stands at ₹1,101 in Delhi, ₹1,129 in Mumbai, ₹1,118.50 in Chennai, and ₹1,126 in Kolkata. This upward revision, which took effect on April 7, 2025, adds further burden to household budgets already grappling with inflationary pressures.
The Domestic LPG (14.2 kg) price in Jammu is at ₹904.50, reflecting a increase in price compared to last month’s rate of ₹854.50. Over the past 12 months, the LPG price trend has been increasing, with an increase of ₹50 from May 2024 to April.
The hike comes after a series of reductions during the latter part of 2023 and early 2024. Now, the increase marks a reversal in the previous trend, making it harder for average Indian families to manage their monthly expenses.
Excise Duty on Petrol and Diesel Increased — Retail Prices Remain Unchanged
The central government has increased excise duty on both petrol and diesel by ₹2 per litre each. Despite this revision in excise, there has been no immediate hike in retail prices at fuel stations. This strategic move is expected to generate additional revenue for the Centre without causing short-term panic among consumers at the pump.
Fuel prices in Delhi currently remain at ₹96.72 per litre for petrol and ₹89.62 per litre for diesel. However, due to the raised excise duty, oil marketing companies (OMCs) may adjust their internal margins, thereby affecting pricing dynamics in the coming weeks.
Impact on Common Households and Budget Planning
The ₹50 increase in LPG prices, though seemingly modest, translates to an additional ₹600 per annum per cylinder for every household. For families using multiple cylinders monthly, this change poses a significant financial challenge. As LPG remains the primary cooking fuel for over 29 crore households, the inflationary implications are substantial.
Meanwhile, the silent revision in excise duties can gradually trickle down into the consumer economy if OMCs begin adjusting pump prices later in the quarter.
Current Retail Fuel Price Snapshot in Major Cities (as of April 8, 2025)
| City | Petrol Price (₹/Litre) | Diesel Price (₹/Litre) |
|---|---|---|
| Jammu | ₹97.36 | ₹84.05 |
| Delhi | ₹96.72 | ₹89.62 |
| Mumbai | ₹106.31 | ₹94.27 |
| Kolkata | ₹106.03 | ₹92.76 |
| Chennai | ₹102.63 | ₹94.24 |
Subsidies and Political Implications Ahead of Elections
With general elections looming, this price adjustment — notably without a visible pump price increase — reflects a politically strategic move. In past years, fuel price control and LPG subsidy announcements have been common during election periods. It remains to be seen whether the central government reintroduces targeted subsidies for Ujjwala scheme beneficiaries or BPL families to neutralize the political fallout.
International Context and Crude Oil Influence
The price hike in LPG and increased excise duties also correlate with the rise in international Brent crude prices, which have surged past $90 per barrel due to geopolitical tensions and production cuts by OPEC+. With India being heavily reliant on imports for over 85% of its oil needs, global volatility directly affects domestic pricing strategies.
Future Forecast: Will Prices Rise Further?
Analysts suggest that while the government has maintained retail prices despite higher excise duties, this cushion may not last. Any sustained upward trend in global crude prices may compel a fuel price revision at the retail level post-election. Additionally, OMCs may not be able to absorb the increased excise cost indefinitely without adjustments in pump prices.
