From 22 March, state-backed oil manufacturing companies (OMCs) have raised the price of domestic cooking gas (LPG) by Rs.50 per cylinder. This abrupt price increase corresponds to a spike in international energy rates. Also, it is the first surge in LPG rates since 6 October, last year.
With this hike, a 14.2 kg non-subsidized LPG cylinder in New Delhi will now cost Rs.949.50. Earlier, the cylinder in the national capital cost Rs.899.50.
Customers in Mumbai will now pay Rs.949.50 for an LPG cylinder, while those in Kolkata will pay Rs.976. Meanwhile, rates in Chennai have been raised to Rs.965.50, while in Lucknow the LPG cylinder will now cost Rs.987.50.
Sources say that a 5 kg LPG cylinder will now be priced at Rs.349, while a 10 kg composite cylinder will come at a price of Rs.669. A 19-kg commercial cylinder will now cost Rs.2003.50.
Despite the cost of raw materials spiraling, prices of the LPG cylinder have remained unchanged for over six months.
Along with LPG cylinder rate, the oil marketing companies have also raised the prices of petrol and diesel by over 80 paise a liter. This rise in price has taken place after a span of 137 days.
Usually, the price of an LPG cylinder varies from state to state due to local taxes levied by the state government.
However, the central government provides a small subsidy to clients in order to compensate for the increased price due to freight expenses.
Each residence is eligible for 12 cylinders every year under the government-subsidy scheme. Furthermore, the amount of the government subsidy varies from month to month.
According to reports, the LPG rates are revised on the average international rate for benchmark fuel and foreign exchange rate.
