Union Minister Pralhad Joshi has said that the Centre also feels "very sad and sorry" over the hike in gas cylinder prices, but described it as "inevitable" given the prevailing global situation.
The domestic cooking gas LPG price has been raised by Rs 29 per cylinder, marking the second increase in three months as state-owned fuel retailers continue to grapple with elevated global energy costs.
"We also feel very sad and sorry about the hike in gas cylinder prices, but before criticising, everyone should understand the situation in the entire world. The world is reeling under very serious crises," Joshi said, speaking to reporters here on Sunday.
"No transshipment is happening, and LPG is available from a very limited number of sources," the Union Minister for Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, said.
Aimed at ensuring that no hardship is caused to LPG and petrol/diesel consumers, the Government of India under Prime Minister Narendra Modi is trying to enhance procurement resources, the minister said.
He added that procurement is happening from countries that are quite far from India.
"Transportation costs are high, the base cost is also high, and insurance costs have increased due to 40–45 days of transshipment. So we are also equally worried about the common man, but at the same time, the price hike is inevitable," he added.
The increase follows a Rs 60-per-cylinder hike on March 7 after the conflict in West Asia disrupted global energy supplies and drove up international fuel prices.
State-run oil marketing companies were estimated to be losing about Rs 703 per LPG cylinder sold before the latest revision.
The union government said Indian households "continue to pay among the lowest prices" for cooking gas globally despite a sharp rise in international PG prices triggered by disruptions due to the West Asia crisis that began on February 28 following a joint attack by the US-Israel on Iran.
In a statement, the government said the cost of supplying a domestic LPG cylinder has risen to more than Rs 1,600 following a surge in international prices that followed the outbreak of war in West Asia.
India's LPG import costs are linked to the Saudi Contract Price (CP), the global benchmark for the fuel. The benchmark has risen about 46 per cent since February after disruptions linked to the Strait of Hormuz tightened supplies from the Gulf region, it added.
(With inputs from PTI)
