Cooking gas (LPG) has been hiked again for the second time by ₹50 today, now the prices for about 289 million families have crossed the mark of ₹1,000 per 14.2Kg cylinder in major cities. The major reason is the bumped up prices of energy in the international market due to the Russia-Ukraine conflict.
As per the Indane Price issued by the Indian Oil Corporation (IOC) dealers, domestic LPG hiked to ₹999.50 a cylinder in the National Capital. As for other major cities in the country, the fuel prices vary based on different transportation costs and other levied charges. For example in Gujarat’s Navsari town a cylinder of 14.2 Kg costs ₹1008.50 after the hike, similarly ₹1026 in Punjab, Ludhiana, ₹1015.50 in Chennai and ₹1098 in Bihar, Patna.
Major Fuel Companies
Three state-run major companies “IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL)” currently dominate the Indian LPG market. And they hiked the cooking gas prices for the first time on March 22 by ₹50 taking the price to ₹949.50 in Delhi. Before this the prices were raised back on March 6, 2021, by ₹15, at that time went up to ₹899.50 per 14.2 Kg cylinder in Delhi.
LPG- Key Fuel For Indian Houses
LPG and Natural gas are one of the favoured cooking gas for every Indian household. As per the date asserted by the Petroleum Ministry last year, there are 28.9 Cr domestic cylinder users in the country, and 70.75 lakh consumers are using natural gas pipelines already, as of January 1 2021. Indraprastha Gas Limited (IGL), the gas distributor in the National Capital, increases the prices of domestic PNG in April month by ₹4.25 per unit taking the price to ₹45.86 per (SCM).
And on May 1 major companies have already hiked the prices of commercial LPG cylinders by ₹102.90 per 19 Kg taking the price to ₹2355.50 from the earlier ₹2253, another hike is also being expected.
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Statement Of Oil Companies
A statement made by the Two executives of major state-run oil companies mentioned that for an unspecified reason the global market is very volatile and they are protecting the consumers from witnessing a steep price hike, especially at a time when inflation has raised above the bearable level of 6 per cent as stated by the Reserve Bank of India.
The Central Bank has also hiked the key lending rate (Repo Rates) by 40 basis points intending to control the surging inflation.
One of the two executives said, “Petrol and diesel prices will be increased soon as revenue losses on them are unbearable to the extent of about ₹8 on petrol and over ₹20 on diesel. It is only a matter of time – either centre and states cut taxes or OMCs [state-run oil marketing companies] will be forced to raise rates.”
