The government on Friday announced the sharpest-ever hike in the prices of commercial LPG and 5kg gas cylinders, against the backdrop of the surging energy costs precipitated by the West Asia conflict and two days after the Assembly elections in Bengal ended.

Aviation fuel prices for domestic airlines, however, were left unchanged, providing stability to local carriers and sparing flyers any immediate cost increase.

Government sources said an increase in petrol and diesel prices in the near future was not ruled out as losses mount from a four-year-old freeze in retail rates despite the sharp rise in global crude prices.

The price of commercial LPG, which is used in hotels and restaurants, was hiked by ₹993 to a record high of ₹3,071.50 per 19kg cylinder. The rate of 5kg FTL, or market-priced LPG cylinders, was increased from ₹549 to ₹810.50 per bottle.

A 5kg FTL cylinder now costs just a shade lower than the ₹913 charged for a 14.2kg cylinder used in household kitchens, or domestic LPG.

Also, the price of bulk diesel, used by industries like telecom signal towers, was increased from ₹137 per litre to over ₹149 a litre.

The ATF for domestic airlines will continue to be priced at ₹1,04,927.18 per kl as state-owned oil companies have decided to absorb the rise in global fuel prices to protect airlines and consumers.

On April 1, when the rates for international carriers were more than doubled to $1,435.31 per kl, oil companies had increased jet fuel prices for domestic airlines by only 25 per cent, adopting a calibrated approach.

The decisions on ATF by state-owned oil companies will come as a relief to domestic carriers like Air India, IndiGo and SpiceJet, which had in the run-up to the scheduled monthly revision warned of the sector being under “extreme stress” and cited “non-operatable conditions”.

Prices vary from state to state depending on local taxes like VAT.

The Opposition slammed the government for the steep hikes, pointing to the timing of the announcement after the Assembly elections.

Announcing the decisions, market leader Indian Oil Corporation (IOC) said the retail prices of petrol, diesel and household domestic LPG had not been changed, fully insulating domestic consumers from the recent increase in international fuel
prices.

“Price revisions have been limited to select industrial segments, which constitute a relatively small share of overall consumption and are subject to routine monthly adjustments based on prevailing international prices,” IOC said in a statement.

Global oil prices have shot up almost 50 per cent after the war in West Asia disrupted energy supply chains.

International crude oil prices this week climbed to a four-year high of $126 per barrel before cooling slightly, but remained above $110 a barrel as ship transits through the Strait of Hormuz stayed restricted and US and Iranian leaders traded barbs amid stalled peace talks.

Indian government sources said the possibility of a petrol and diesel price hike in the near future was not ruled out.

Analysts had earlier flagged the possibility of price increases of ₹25-28 per litre after the Bengal polls ended on April 29.

Union minister of state for petroleum and natural gas Suresh Gopi defended the hike in commercial LPG cylinder refill prices, saying global energy rates also needed to be taken into consideration.

“Please check other parts of the world on how much prices have risen there. We could withhold to this extent,” he told reporters, declining to comment further.

Lok Sabha Opposition leader Rahul Gandhi of the Congress posted on X: “I told you so — the heat of inflation would come after the elections. Today, commercial gas cylinders are ₹993 more expensive. The biggest increase in a single day. This is the election bill. From February till now: ₹1,380 increase — a whopping 81% jump in just 3 months. Tea stalls, dhabas, hotels, bakeries, sweet shops — the burden on everyone’s kitchen has increased. And this will affect your plate too. First strike on gas, next strike on petrol-diesel.”

AAP leader Atishi said: “The prices that were frozen during the elections have now suddenly started touching the sky. This inflation is a direct blow to the budgets of street vendors, labourers and the common public. It’s clear that the BJP only cares about the public’s votes, not their pain.”

Samajwadi Party chief Akhilesh Yadav said: “Cylinders don’t get expensive; the roti-thali does. This is known only by those who buy and eat it themselves, not by the one who goes and eats at others’ places or steals from others’ plates.... When will the BJP bring a censure motion on ‘inflation, unemployment, joblessness, and recession’?”