Starting from Wednesday, you have to shell more for cooking gas. The price of Liquefied Petroleum Gas (LPG) has been hiked again by Rs 15. Cooking gas and auto fuel has been on a sharp hike this year. This was the fourth straight increase in LPG cylinder price in less than two months. The price of a domestic cooking gas cylinder has been surged by Rs 205, since January 1.
With the latest increase, the price of a 14.5 kg cylinder in Delhi will cost Rs 899.50. In Mumbai, domestic cooking gas cylinder will cost you Rs 899.50 as well. A LPG cylinder will be available at Rs 926 in Kolkata, highest among the metro cities in India. In Chennai, a 14.5 kg cooking gas will be priced at Rs 915.50. The state-run oil mammoths – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – announced that these prices will take effect from October 6.
The price of a LPG gas cylinder is calculated based on the import parity price (IPP). The IPP is based on the LPG price in the international market given that a country imports the fuel. Saudi Aramco’s LPG price, includes the FOB (free on board) price, ocean freight, insurance, customs duties, port dues and so on. Then the price is being converted to Rupees. On the top of that, there are in-country prices such as GST, excise duty, freight charges. The price for domestic cooking gas is reset every month in India on this basis. LPG cylinder prices change from one state to another depending on the state-wise taxes, much like petrol and diesel.
The Union government provides subsidies to customers of certain states to offset the heavy freight charges that they face. Under this scheme, each household is eligible for 12 cylinders a year and this subsidy amount changes every month. Families with an annual income of less than Rs 10 lakh are eligible for subsidy facility. Customers need to link the bank accounts with their Aadhaar Card to get the subsidy. The amount of the subsidy provided by the government varies from month to month, but it is largely less that Rs 30. There is no subsidy on a domestic cylinder for the people staying in Delhi. The ministry of petroleum and natural gas is evaluating a threshold at which the subsidy on LPG or cooking gas will be reinstated, Business Standard reported last week. There will be a little over 300 million LPG consumers in India by March 2022.
Brent future jumped to a three-year high on Wednesday after the OPEC+ group of producers stuck to its planned output increase rather than raising it further. US crude oil price also hit the highest since 2014.
Petrol and diesel prices climbed to all-time high on Wednesday after the second straight hike. A litre of petrol will cost Rs 102.94 in Delhi. In Mumbai, petrol price hiked near Rs 108-mark on Wednesday. You have to shell Rs 108.96 for a litre of petrol in the financial capital. The auto fuel is being priced at Rs 100.49 in Chennai and Rs 103.65 in Kolkata.
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