LPG gets costlier, price hiked by Rs 50; non-subsidised cooking gas cylinder now costs this much

By: |
December 16, 2020 3:47 PM

Cooking gas LPG price on Wednesday was increased by Rs 50 per cylinder, the second hike in rate this month following firming of international prices.

Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates.

Cooking gas LPG price on Wednesday was increased by Rs 50 per cylinder, the second hike in rate this month following firming of international prices. Also, aviation turbine fuel (ATF) price was raised by a steep 6.3 per cent.
Non-subsidised LPG price was increased to Rs 694 per 14.2-kg cylinder from Rs 644 earlier, according to a price notification of state fuel marketing companies. This is the second increase in rate this month. On December 1, price was hiked by a similar Rs 50 per cylinder.

Prior to that, the price had remained unchanged at Rs 594 a cylinder since July. This was the same rate at which subsidised LPG refills are also sold. Since May, most cooking gas customers have not received subsidies as the combination of international oil price collapse and domestic refill rate increases brought parity between subsidised and market rates. A subsidised cooking gas cylinder was priced at Rs 497 in Delhi in June 2019. Since then, prices have cumulatively gone up by Rs 147.

However, the increase in rates this month would mean that the government will have to resume paying subsidies to consumers. Rates of LPG are revised every fortnight. Simultaneously, the price of jet fuel was hiked by Rs 2,941.5 per kilolitre, or 6.3 per cent, in Delhi to Rs 49,161.16 per kl. This is the second increase in ATF price this month. Rates had gone up by 7.6 per cent (Rs 3288.38 per kl) on December 1.

Like LPG, ATF prices too are revised on the 1st and 16th of every month based on the average rate of benchmark international fuel and foreign exchange rate in the preceding fortnight. Alongside an increase in the price of 14.2-kg LPG cylinders, rates of the 5-kg bottles were increased by Rs 18 and those of the 19-kg cylinders by Rs 36.50.

Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. Cylinders have to be bought at full price at the time of purchase, and the subsidy is credited to the customer’s bank account by the government. Non-subsidised LPG now costs Rs 720.50 in Kolkata, Rs 694 in Mumbai, and Rs 710 in Chennai. Rates defer from state to state depending on the incidence of local sales tax or VAT.

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