The government on Wednesday increased the price of 14.2 kg domestic liquefied petroleum gas (LPG) cylinders by ₹50 to ₹1,103 per cylinder in Delhi.
Besides, the price of a 19 kg commercial LPG cylinder has also been increased by ₹350.50, taking the total cost to ₹2,119.50 per cylinder in the national capital.
The new revised price of 14.2 kg LPG cylinder in Delhi will be ₹1,103 instead of ₹1,053 from Wednesday, while, in Mumbai, LPG cylinder will now be sold for ₹1,102.5 instead of ₹1,052.50.
Similarly, the price of an LPG cylinder in Kolkata will be ₹1,129 against ₹1,079 till Tuesday, whereas, in Chennai, the cost will be ₹1,118.5 instead of ₹1,068.50.
In the case of other States, the differences in the RSP for LPG are mainly on account of the distance of the linked ports and bottling plants and the consequent transportation costs of LPG. The prices of domestic LPG have remained unchanged since July 2022.
For domestic LPG, the government continues to modulate the effective price to consumers. Public Sector Oil Marketing Companies (OMCs) have suffered huge losses on the sale of domestic LPG. The government recently approved a one-time compensation of ₹22,000 crore to OMCs to compensate for these losses.
In May 2022, the government started a targeted subsidy of ₹200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for up to 12 refills a year for FY23.
As of December 2022, there are 31.37 crore domestic LPG consumers nationwide.
India imports more than 60 per cent of its domestic LPG consumption. The average Saudi CP prices, on which the domestic LPG prices are based, increased from $454 per tonne MT to $693 a tonne during 2019-20 to 2021-22. From 2022 to 23, the average Saudi CP has risen to $710 per tonne until February 2023.
Opposition reacts
The Congress party slammed the government over the increase in cooking gas prices adding that if it comes to power at the Centre, it would provide LPG cylinders for domestic users under ₹500, like in Rajasthan.
“Public is asking how to make Holi dishes. For how long will this loot continue? The common man is facing the brunt of high inflation of the Modi government,” Congress president Mallikarjun Kharge tweeted.
Congress spokesperson Gaurav Vallabh said that Prime Minister Modi has given a Holi gift to the people in the form of LPG price hike.
“If the Congress comes to power, the party pledges to provide domestic LPG cylinders below Rs 500 as being provided by the Rajasthan government. Modi ji should draw lessons from the Congress government in Rajasthan and not loot the people of the country with high taxes,” he added.
The Communist Party of India (Marxist) also attacked the government over the price increase in cooking gas.
Party’s General Secretary Sitaram Yechury tweeted “Another blow to the common man’s pocket. Domestic LPG cylinder prices hiked by ₹50 & commercial LPG cylinder prices by ₹350.50. With rising fuel prices, inflation, and job losses, Modi govt’s insensitive policies continue to burden the people. Rollback this cruel hike.”
CPI (M) in a statement said, “This hike burns the people further when the prices of all food and essential commodities are rising relentlessly. With this hike, more people will dropout from using subsidised cooking gas cylinders as they simply cannot afford it.”
Already, over 10 per cent of those under the Ujjawala Yojana have not taken any refill cylinders during the last year. Nearly 12 per cent took only 1 refill. A total of 86.5 per cent took only 4 or less refills against the minimum required annual average of more than 7 cylinders, and against an entitlement of twelve cylinders per year, the party pointed out.
CPI (M) said that a hike in commercial LPG prices is bound to increase the input costs for all processed food products, causing further price rise.
ATF Prices
The price of Aviation turbine fuel (ATF) was reduced by ₹4,606 per kilolitre, or 4.09 per cent, to ₹1,07,750.27 per kilolitre in the national capital on Wednesday.
The reduction is followed by an increase in the price of ATF in February 2023 to ₹1,12,356.77 per kilolitre in Delhi.