Cooking gas LPG price on Wednesday was hiked by Rs 50 per cylinder, the third increase in rates since May on firming international energy prices.
Non-subsidized LPG now costs Rs 1,053 per 14.2-kg cylinder in the national capital, up from Rs 1,003 previously, according to a price notification of state-owned fuel retailers.
Common households pay non-subsidized rates for the cooking gas they buy after the government restricted subsidy to just poor beneficiaries who got connections under the Ujjwala scheme.
This is the third increase in the LPG rate since May and the fourth this year. The price was hiked by Rs 50 per cylinder on March 22 and again by the same quantum on May 7. Rates went up by Rs 3.50 per cylinder on May 19.
Prices have gone up by Rs 244 per cylinder since June 2021. Of this, Rs 153.50 increase happened since March 2022.
Petrol and diesel prices, however, continue to be on freeze for the third straight month. The pause followed rates being hiked by a record Rs 10 per litre in a matter of 16 days beginning March 22.
At that time, the government also stated that Rs 200 per cylinder subsidy on cooking gas will be limited to only 9 crore poor women and other beneficiaries who got free connections under the Ujjwala scheme and the remaining users including households will pay the market price (also known as non-subsidised rate).
Originally, non-subsidised #cookinggas was the one that consumers used to buy after exhausting their quota of 12 cylinders at subsidised or below-market rates. However, the government stopped paying subsidy on LPG to households in mid-2020.
Non-subsidized #LPGcosts Rs 1,052.50 per 14.2-kg cylinder in Mumbai, while it is priced at Rs 1,079 a bottle in Chennai and Rs 1,068.50 in Kolkata.
Rates differ from state to state depending on the incidence of local taxes such as #VAT. Prices are higher in states with higher taxes.
Alongside, oil firms also reduced the price of commercial LPG cylinders — the ones used by establishments like hotels and restaurants. It now costs Rs 2,012.50 per 19-kg cylinder in the national capital, down from Rs 2,021 per cylinder.
International oil prices have been on the rise this year. They jumped to a 13-year high of USD 140 per barrel in March before shedding some of the gains. Brent was trading at USD 103.92 per barrel on Wednesday.
To compound things, the #Indianrupee tumbled to Rs 79.24 to a dollar, making imports costlier.
India relies on overseas purchases to meet about 85 percent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.
While India has surplus oil refining capacity, it does not manufacture enough LPG to meet domestic demand and imports significant quantities from nations such as Saudi Arabia.
Liquified Petroleum Gas prices (LPG gas price) were raised by the Oil Marketing Companies (OMCs) by Rs 50 per 14.2 kg per cylinder, for the first time since October.
The increase in LPG costs in India has been attributed by the government to the rise in exchange rates. The increase might encourage it to restart providing the cooking gas subsidy, which was halted when the pandemic started to spread and prices decreased globally.
The Domestic LPG cylinder price in Maharashtra (Mumbai) stands at Rs. 1,002.50.
The full form of LPG is Liquefied Petroleum Gas. This is a generic name that refers to a group of flammable hydrocarbon gases such as propane, butane, isobutane, etc.