LPG Price Hiked by ₹50 per Cylinder; Locals React

Union Petroleum Minister Hardeep Singh Puri on Monday announced that the price of domestic liquefied petroleum gas (LPG) cylinders will be increased by ₹50 per unit, effective from tomorrow. 

The minister addressed the media during a press conference, confirming that the 14.2-kg domestic cylinder, which previously cost ₹803, will now be priced at ₹853.

Today's LPG price in different cities: 

Cities	Domestic (14.2 Kg)	Commercial (19 Kg)
New Delhi	₹803.00 ( 0.00 )	₹1,762.00 ( -41.00 )
Mumbai	₹802.50 ( 0.00 )	₹1,713.50 ( -42.00 )
Kolkata	₹829.00 ( 0.00 )	₹1,868.50 ( -44.50 )
Ahmedabad	₹810.00 ( 0.00 )	₹1,822.00 ( +6.00 )
Gurgaon	₹811.50 ( 0.00 )	₹1,779.50 ( -40.00 )
Noida	₹800.50 ( 0.00 )	₹1,762.00 ( -39.50 )
Hyderabad	₹855.00 ( 0.00 )	₹1,985.50 ( -44.00 )

 

The revised pricing will see domestic LPG cylinders cost ₹553 for beneficiaries under the Pradhan Mantri Ujjwala Yojana, while non-Ujjwala beneficiaries will pay ₹853 per unit. The price hike, according to the minister, will be reviewed on a fortnightly basis and adjusted in accordance with international market trends.

"International price of LPG has been going up. It went up from $415 per metric tonne to $712 per metric tonne, but we never passed it to consumers," Puri said. "The rate of increase has been absorbed by the oil marketing companies (OMCs). The ₹50 increase on LPG cylinders addresses the current under-recovery and not the backlog. For the backlog, we will be making a request to the Finance Ministry."

Puri further stated that the three state-run oil marketing companies had incurred a cumulative under-recovery of ₹41,338 crore on LPG in the previous financial year.

Reacting to the development, local residents in Ahmedabad, Gujarat, have expressed mixed reactions. "Every few months there's a hike, and it gets harder to manage the kitchen budget. While ₹50 might not seem like much to some, it adds up for families like ours,” said a homemaker. 

On the subject of fuel prices, the minister also commented on the government's decision to raise excise duty on petrol and diesel by ₹2 per litre each. The duty on petrol has been increased to ₹13 per litre and on diesel to ₹10 per litre, as per an official order issued earlier today. 

Despite the tax hike, Puri assured that there will be no impact on retail selling prices of petrol and diesel. "You can legitimately expect prices of petrol and diesel to be moderated by the oil marketing companies in keeping with the global price. In a deregulated sector, you can expect them to accordingly adjust the market retail price," he said.

The government clarified that the excise hike will be offset against a reduction in retail prices that would otherwise have occurred due to falling international oil prices, thus shielding consumers from any immediate impact.

A local resident remarked, "I’m glad the petrol prices won’t go up for now, but these things usually catch up with us eventually. We’ll have to wait and see what happens in the next review."

Also Read: Centre Hikes Excise Duty on Petrol, Diesel