LPG Cylinder Price Hiked: The price of Liquefied Petroleum Gas (LPG) cylinders for domestic use has been hiked again by Rs 50 in Delhi, Mumbai, Kolkata and other cities, oil marketing companies said in a notification on Saturday May 7. After the latest price hike, 14.2 kg domestic cylinder will cost Rs 999.50 in Delhi from today, up from the previous price of Rs 949.50, news agency ANI reported on the day. The LPG gas cylinder price hike today comes after little over a month amid rising crude oil prices globally.
A 14.2-kg non-subsidised LPG cylinder will now cost Rs 999.50 in the national capital. With the latest price hike, the LPG cylinder in Mumbai will cost Rs 999.50, while in Kolkata, a customer will have to pay Rs 1,026. In Chennai, the prices have been increased to Rs 1,015.50 and in Lucknow, it will now cost Rs 1,037.50.
Earlier on May 1, the prices of 19 kg commercial LPG cylinders were also increased by Rs 102 from Rs 2,253 in Delhi. The prices were hiked by the same amount in other cities as well. Restaurants, eateries, tea stalls and others constitute the largest user segment of the 19 kg cylinder. The price of a 5kg LPG cylinder was also hiked to Rs 665 at the time.
Previously, the price of domestic LPG cylinders were increased by Rs 50 across India on March 22, after a freeze of six months since October last year. This was done after the petrol price and diesel price also saw a steep rise during the time amid rising crude oil prices.
After the assembly elections in five states including Uttar Pradesh and Punjab, the prices of petrol, diesel, LPG cylinders (both domestic and commercial) and jet fuel have been hiked continuously. Though petrol price today has remained unchanged for a month now, it was hiked by Rs 10 in just 16 days between March and April.
LPG cylinders prices vary from one state to another, due to state wise taxes imposed on them. The central government, however, provides a small subsidy to select customers to make up for the higher price arising from freight charges. Each household in India is eligible for 12 cylinders per year under the government’s subsidy scheme. The amount of the subsidy provided by the central government varies from month to month.
LPG prices are revised at the beginning of every month based on the average international rate for benchmark fuel and foreign exchange rate in the preceding month.
The LPG cylinder price hike today comes amid rising inflation rates in the country. The retail inflation in March has exceeded the expectations, and the same in April is expected to rise further. To tackle inflation, the Reserve Bank of India has hiked its key lending rates by 40 basis points in a first after August 2018. The RBI has expected prices of daily commodities to remain high amid the global inflation in its out-of-schedule monetary policy committee meet.