LPG price crosses Rs 1k mark
For representational purpose only
New Delhi: Cooking gas LPG prices were on Saturday hiked by Rs 50 per cylinder, the second increase in rates in just over six weeks following the firming of international energy rates.
Non-subsidised LPG now costs Rs 999.50 per 14.2-kg cylinder in the national capital, up from Rs 949.50 previously, according to a price notification of state-owned fuel retailers. This is the second increase in LPG rates in just over six weeks. Prices were hiked by Rs 50 per cylinder on March 22. Since April 2021, prices have risen by Rs 190 per cylinder.
Petrol and diesel prices however continue to be on freeze for over a month now. The pause followed rates being hiked by a record Rs 10 per litre in a matter of 16 days beginning March 22.
Non-subsidised cooking gas is the one that consumers buy after exhausting their quota of 12 cylinders at subsidised or below-market rates. However, the government pays no subsidy on LPG in most cities and the price of the refill that consumers, including the poor women who got free connection under the much-talked Ujjwala scheme, is the same as non-subsidised or market price LPG. Non-subsidised LPG costs Rs 999.50 per 14.2-kg cylinder in Mumbai while it is priced at Rs 1,015.50 a bottle in Chennai and Rs 1,026 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. Earlier this month, the price of commercial LPG cylinders - the one used by establishments like hotels and restaurants - was increased. On May 1, the price of a 19-kg commercial LPG cylinder was increased by Rs 102.50 to Rs 2,355.50. 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 109.77 per barrel on Saturday.
To compound things, the Indian rupee tumbled to a near Rs 77 to a dollar. India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.