Second hike in 11 months hits 10 cr Ujjwala beneficiaries; commercial LPG up by ₹114.50 per 19-kg cylinder; no change in petrol & diesel rates
PTI, NEW DELHI: Domestic cooking gas LPG price was hiked on Saturday by a steep Rs 60 per cylinder, the second increase in rate in less than a year, as the spike in global energy rates following the West Asia crisis weighed on the world’s third largest energy consumer.
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Top government sources, however, were quick to state that an increase in petrol and diesel prices is not in the offing as State-owned oil firms have enough financial muscle to absorb the warranted increase.
Non-subsidised LPG — the one that common households use in kitchens — will now cost Rs 913 per 14.2-kg cylinder in Delhi as against Rs 853 previously, according to the Indian Oil Corporation (IOC) website.
Ujjwala Yojana beneficiaries — the over 10 crore poor who have got free LPG connections since 2016 — will also have to bear the same amount of price increase. They will now pay Rs 613 per 14.2 kg cylinder after accounting for a subsidy of Rs 300 per bottle they get for up to 12 refills in a year.
Top government sources said the increase was necessitated because of a spike in global energy prices. Despite the increase, the price is less than the Rs 1,050 per 14.2-kg cylinder rate required to breakeven at cost.
They said considering an average consumption of 4-5 cylinders per year per household, the increase translates to 80 paisa per day for a family of four or just 20 paisa per person.
Sources ruled out any immediate increase in petrol and diesel price as three fuel marketing companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) with bumper profits in earlier this year – had enough financial muscle to absorb such impact.
Retail petrol and diesel prices have been on a freeze since April 2022, with fuel retailers absorbing losses when crude prices are high and making profits when rates are low.
The LPG price rise on Saturday is the second increase in rate in 11 months. The price was last hiked by Rs 50 in April last year.
Alongside, the price of commercial LPG – the one used by establishments such as hotels and restaurants – was increased by Rs 114.5 per 19-kg cylinder. It now costs Rs 1,883 in Delhi. This increase comes on top of Rs 28 per 19-kg cylinder raise effected on March 1.
Commercial LPG rate has risen by Rs 302.50 this year.
Officials said the increase follows a steep rise in global energy prices since the US and Israel attack on Iran last weekend triggered a wider military conflict in the oil and gas-rich Middle East.
In Mumbai, non-subsidised LPG now costs Rs 912.50, Rs 939 in Kolkata, and Rs 928.50 in Chennai, according to the IOC website.
Rates differ from State to State depending on the incidence of local sales tax or VAT.
Meanwhile, the price of domestic and commercial LPG cylinders in Goa has increased, adding to the financial burden on consumers. According to a consumer awareness notice issued by the Goa Consumer Action Network (GoaCAN), the new price for a 14.2 kg domestic LPG cylinder in the State has been fixed at Rs 927 from March 7.
Earlier, the price of a domestic LPG cylinder in Goa was Rs 867. With the latest revision, consumers will now have to pay Rs 60 more per cylinder. The price hike affects households across the state that rely on LPG cylinders for daily cooking needs.
GoaCAN has clarified that the new rate will apply to all cylinders delivered on or after March 7, irrespective of the booking date. This means that even if customers booked their cylinders before March 7, they will still be charged the revised price if the delivery is made on or after that date. The billing will therefore be based on the delivery date rather than the booking date.
The increase in LPG prices comes at a time when many households are already dealing with rising living costs. Since LPG is an essential cooking fuel for most families, such price increases are expected to put additional pressure on household budgets.
In light of the price hike, Goa CAN has urged consumers to remain vigilant while receiving LPG cylinder deliveries. Customers have been advised to always ask the distributor for a proper bill when the cylinder is delivered. Having a bill ensures transparency in billing and helps prevent distributors from charging extra.
Consumers have also been encouraged to check the weight of the cylinder using a weighing scale at the time of delivery to ensure it contains the correct quantity of gas. Additionally, customers should verify that the safety seal on the cylinder is intact and properly closed before accepting the delivery.
GoaCAN further stated that if any gas agency refuses to provide home delivery or charges more than the official price, consumers should report the matter immediately. Complaints can be sent to the organisation via email at [email protected].
For additional information about LPG companies, distributors, and consumer services, customers can visit the official LPG service portal at pmuy.gov.in/mylpg.html.
GoaCAN has appealed to consumers to stay alert and aware while purchasing LPG cylinders, especially during a period of rising prices and increasing cost of living.
