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Non-subsidised LPG rates hiked by steep Rs 86 per cylinder

The price of non-subsidised LPG was hiked by a steep Rs 86 per cylinder effective from Wednesday.

India TV Business Desk, New Delhi [Published on:02 Mar 2017, 6:26 AM IST]
Non-subsidised LPG rates hiked by steep Rs 86 per cylinder
Non-subsidised LPG rates hiked by steep Rs 86 per cylinder

The price of non-subsidised cooking gas (LPG) was hiked by a steep Rs 86 per cylinder effective from Wednesday, reflecting international trends. 

"With effect from March 1, 2017, non-subsidised price of LPG cylinder has increased by Rs 86. This is in line with the rise in global LPG product prices," a Petroleum Ministry statement here said.

Non-subsidised LPG, which customers buy after exhausting their subsidised quota of 12 cylinders in a year, will now cost Rs 737.50 in Delhi for a 14.2 kg cylinder.

It was priced at Rs 651.50 per 14.2-kg cylinder till yesterday, according to state-owned oil companies. 

The hike, steepest in the history, comes on back of Rs 66.5 per cylinder increase effected from February 1. 

Rates have been on the upswing since October, 2016. A non-subsidised LPG cylinder was priced at Rs 466.50 in Delhi in September and has risen by Rs 271 per bottle or 58 per cent in six instalments. 

Oil companies also raised price of subsidised cooking gas by a marginal 13 paisa to Rs 434.93 per 14.2 kg cylinder in Delhi. This follows a 9 paise increase effected from February 1. 

Prior to these two marginal price hikes, subsidised cooking gas rates had gone up eight times of nearly Rs 2 per cylinder each. 

Aviation turbine fuel (ATF) price was also raised by a marginal Rs 214 per kilolitre to Rs 54,293.38 per kl. The increase comes on back of a 3 per cent hike on February 1. 

Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.


 

An official statement said the increase in non-subsidised LPG rates were in "line with the rise in global LPG product prices." 

"However, there will be no impact on the LPG consumers receiving subsidised refills," it said. 

Giving an illustration, it said the consumer will pay Rs 737 for a new refill in Delhi and will receive subsidy amount of Rs 303 in his/her account and the net price for the consumer will be Rs 434, which remains unchanged. 

"Thus, there will be no net impact of the increase in price of non-subsidised cylinder on the LPG consumers receiving subsidised refills," it added.

(With PTI inputs) 

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