Household LPG price tops Rs 1,000 mark in many cities
NEW DELHI: The price of a household LPG refill cylinder shot past Rs 1,000 in several cities and stood just 50 paise short of that mark in Delhi and Mumbai as the government raised rates by Rs 50 for the second time since March 22, adding to the financial stress of households already reeling under high cost of transport fuels, edible oils and other condiments.
After the latest increase, each domestic LPG refill will cost Rs 999.50 in Delhi and Mumbai, Rs 1,026 in Kolkata and Rs 1,015 in Chennai. Prices of the refills vary across cities in accordance with state taxes. Following the latest hike in LPG rate that has taken the price of a cylinder past Rs 1,000 in many cities, domestic consumers will have to bear the entire burden of the increase in the absence of subsidy.
The government had scrapped the LPG subsidy in May 2020, taking advantage of a fall in global energy prices due to the pandemic. Domestic LPG rates were last revised on March 22 this year by Rs 50, breaking the price freeze since October 6, 2021, when prices were raised by Rs 15 per cylinder.
Household LPG price stood at Rs 714 on January 1, 2020 in Delhi. It went up to Rs 858 in February that year but subsequently came down twice but remained north bound till the freeze in October 2021. The government controls consumer prices of LPG but commercial refills of 19kg are sold at market-determined rates.
Domestic LPG prices are benchmarked to Saudi Aramco’s FOB (free on board) price for the fuel. Ocean freight, insurance, port charges and customs are added to Saudi benchmark. The final cost is arrived at after loading bottling charges, inland transportation, dealer margins and state taxes.