Domestic LPG price increased by ₹50 a cylinder

Households will now have to spend more on liquefied petroleum gas (LPG) from today, as national oil marketing companies increased the price of the price of the 14.2-kg cylinder by ₹50, with effect from July 6.

The third revision in two months, including one to factor in increase in LPG distributor commission, it is bound to compound misery of households grappling with runaway inflation and rising prices of various commodities and daily use items.

Region-wise breakup

With the latest increase in the price of non-subsidised (14.2 kg) cylinder, in Delhi households need to pay ₹1,053.00 as against ₹1,003. The new price in Mumbai is ₹1,052.50 (₹1,002.50); Chennai ₹1,068.50 (₹.1,018.50) and Kolkata ₹1,079.00 (₹1,029).

Prices vary across cities and in Hyderabad has raced past the ₹1,100 mark. As against ₹1,055 they paid since May 19, households in Telangana’s capital will have to shell out ₹1,105 per cylinder now.

‘Timing of hike is worse’

Condemning the increase, consumer activist T. Sadagopan in Chennai said it imposes an additional financial burden on households reeling under price rise. The timing could not be worse as floods are causing havoc in many parts of the country thus impacting supplies of LPG cylinders to many households.

He also cited how milk prices are on the rise in the country. In Tamil Nadu, he said many private dairies have increased the price by as much as ₹.4 per litre in recent weeks. Consumers across the country are also feeling the heat on account of high petrol and diesel prices.

Barring those issued LPG connections under Centre’s Ujjwala scheme, almost all other households are ineligible or get a small sum as cooking gas subsidy. What this means is even for the first 12 subsidised cylinders they order in a year most households pay the non-subsidised price.

Domestic LPG prices are influenced by crude oil prices in international markets. The increase was necessitated in view of ‘under-recovery’ on LPG or in other words, the retail selling price not in tandem with that of crude oil, sources in oil industry say. An office bearer of an all India LPG distributors body said the increase in cooking gas prices for households is still insufficient to cover the under-recoveries of the oil companies.

Non-subsidised cylinder prices were increased first time this year in March by ₹50 per refill, followed by ₹50 more on May 7. On May 19, the price went up around ₹4 following a change in LPG distributors commission.

Compared to the price a year ago, the increase for households in Delhi is over ₹218 per cylinder – in July 2021 the price was ₹834.50. The hike comes on the heels of the oil companies increasing security deposit of new domestic LPG connections.

Interestingly, commercial LPG price, which is perceived as a benchmark for non-subsidised cooking gas price, was slashed by more than ₹80 per 19-kg cylinder earlier this month. Continuing on the same line, the oil companies on July 6 have reduced the 19-kg cylinder price by ₹7 each.