Commercial LPG prices slashed by Rs. 135/cylinder
Oil marketing companies (OMCs) have reduced the price of the 19-kg commercial liquefied petroleum gas (LPG cylinder) by around Rs. 135. In Delhi, a 19-kg commercial LPG cylinder will now cost Rs. 2,219. It would cost Rs. 2,322 in Kolkata, Rs. 2,171.50 in Mumbai, and Rs. 2,373 in Chennai. However, the price of non-subsidized domestic LPG remained unchanged, costing Rs. 1,003/14.2-kg cylinder in Delhi.
Why does this story matter?
Last month, cooking gas prices were raised twice, pushing LPG prices above Rs. 1,000. Every household in the country is entitled to 12 14.2-kg LPG cylinders at subsidized rates in a year. Additional purchases beyond this number are to be made at the market price. However, the rates of domestic LPG cylinders vary from state to state due to local taxes.
Pradhan Mantri Ujjwala Yojana beneficiaries to receive Rs. 200 subsidy
Beneficiaries of the Pradhan Mantri Ujjwala Yojana will receive a Rs. 200 subsidy straight into their bank account, making the effective price for them Rs. 803/14.2-kg cylinder. Since June 2020, there has been no subsidy on LPG, including for Ujjwala beneficiaries, and everyone has purchased cylinders at the market price. As per reports, OMCs typically revise LPG pricing twice a month.
New prices of commercial LPG in major cities
The 19-kg commercial LPG cylinder now costs Rs. 2,219 in Delhi, down from Rs. 2,355.50 previously. In Mumbai, the price of commercial LPG has been reduced from Rs. 2,307 to Rs. 2171.50 per cylinder, while in Kolkata, the price has been reduced to Rs. 2,322 per cylinder from Rs. 2,455. In Chennai, customers will now spend Rs. 2,373 instead of Rs. 2,508.
Cost of non-subsidized LPG remained unchanged
As per the price notification from state-owned fuel retailers, non-subsidized LPG now costs Rs. 1,003 for every 14.2-kg cylinder in the country's capital, up from Rs. 999.50 previously. Prices per cylinder have risen by 193.5% since April 2021. According to an oil ministry official earlier, Saudi Arabia's LPG prices have increased by 33% while domestic prices in India have risen by only 11%.
India imports large amount of oil and gas
India relies on foreign purchases to meet approximately 85% of its oil requirements, making it one of Asia's most vulnerable to rising oil prices. While India has excess oil refining capacity, it does not produce enough LPG to cope with its increasing domestic demands and imports large amounts of it from countries like Saudi Arabia, Livemint reported.
