India lifts LPG cylinder rates while cutting excise on high‑ethanol petrol

On June 1 domestic LPG cylinders in India were priced higher, costing ₹942 in Delhi, ₹941.5 in Mumbai, ₹968 in Kolkata, ₹957.5 in Chennai, ₹944.5 in Bengaluru and ₹979.5 in Lucknow. Commercial cylinders also rose, with prices above ₹3,000. The increase follows a surge in international LPG prices after Middle‑East tensions disrupted exports through the Strait of Hormuz; the Saudi 50:50 propane‑butane benchmark climbed from US$542.5 per tonne in February to US$790 per tonne in June. The higher cost is borne by public‑sector oil marketing companies, amounting to a loss of roughly ₹700 per domestic cylinder.

Separately, the Indian government announced a waiver of central excise duty on petrol blended with 22 % to 30 % ethanol (E22‑E30). The move is intended to encourage higher‑ethanol blends and could create pricing room, as the excise component on regular petrol is about Rs 11.90 per litre. Industry observers note any consumer benefit will depend on the scale of blended‑fuel availability and the mileage impact of ethanol (3‑10 %). Officials suggest the policy could eventually lower pump prices by up to Rs 20 per litre when higher blends such as E85 or E100 are marketed without VAT.