The price of domestic LPG cylinders was hiked sharply on Sunday — increasing by Rs 29 across the country. Oil companies had previously raised LPG prices by Rs 60 per cylinder on March 7 amid continued disruptions in global energy markets. Petrol, diesel, CNG and commercial LPG prices have climbed steadily as the conflict in West Asia remains underway.
According to agency reports citing the Indian Oil Corporation, a 14.2-kg cylinder of non-subsidised LPGwill now cost Rs 942 in Delhi. The price was previously raised from Rs 853 to Rs 913 in March this year.
The increase also follows a steep rise in commercial LPG prices over the past few months. The cost was hiked by Rs 42 to Rs 53.50 (depending on the city) for the 19-kg cylinders earlier this week — the fifth increase since February. Prices of 5-kg free-trade LPG cylinders were also increased by Rs 11 to Rs 821.50 per cylinder.
‘OMCs losing over Rs 700 every LPG cylinder’
Industry sources told news agency PTI that the hike had only partially offset losses incurred on domestic LPG sales. State-run oil marketing companies were estimated to be losing about Rs 703 on every LPG cylinder sold before the latest revision. Oil Ministry officials also said recently that the government had taken several steps to ensure adequate LPG availability — including increasing domestic production and securing imports.
“As far as the under recovery on LPG domestic cooking cylinder is concerned, it is still in the range of almost 700 rupees,” Joint Secretary Sujata Sharma told reporters on Thursday.
Sharma attributed the recent moderation in LPG demand to multiple factors, including lower consumption by commercial and industrial users, improved booking cycles and technology-led delivery authentication.
“There has been a reduction because our commercial and industrial LPG and the other reason is the booking period that we managed, I mean 25 days and 45 days. And the third reason is the DAC [Delivery Authentication Code] linked deliveries,” she added.