The prices of domestic LPG cylinder have been increased by Rs 29 and the new rates will come into effect from Sunday. This is the second hike in around three months amid the global turmoil and constrained supply chain due to the US-Iran war.
With this, a 14.2 kg domestic LPG cylinder will cost Rs 942 instead of Rs 913 in Delhi, whereas the rates were increased to Rs 941.50 in Mumbai and Rs 968 in Kolkata. In Chennai, the prices were increased to Rs 957.50.
The prices were last increased on March 7. Back then, the rates were hiked by Rs 60 due to the disruptions in global supply chains. Despite that, state-run oil marketing companies (OMCs) continued to suffer losses on domestic LPG sales.
Sources, quoted by news agency PTI, said state-run OMCs were losing around Rs 703 on every LPG cylinder that was sold before the latest hike in prices. Notably, the OMCs have also increased the petrol and diesel, and compressed natural gas (CNG) rates multiple times since May.
| Here's how you much you need to pay in the four metros | ||
| City | Old Rates | New Rates |
| Delhi | 913 | 942 |
| Mumbai | 912.50 | 941.50 |
| Kolkata | 939 | 968 |
| Chennai | 928.50 | 957.50 |
According to PTI, petrol and diesel prices have been increased cumulatively by Rs 7.50 per litre since May, while CNG rates have been hiked by Rs 6 per kg.
The customers are unlikely to receive a reprieve soon, as the US-Iran doesn't seem to end in the near future, keeping fuel markets remain volatile. The government hasn't allowed full pass-through of higher international energy prices to consumers, though.
Earlier this week, it reiterated once again that all possible steps have been taken to ensure that there is adequate LPG availability, and also that fuel rates remain under control.
"As far as the under recovery on LPG domestic cooking cylinder is concerned, it is still in the range of almost 700 rupees," Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, said on Thursday.
"There has been a reduction because our commercial and industrial LPG and the other reason is the booking period that we managed, I mean 25 days and 45 days. And the third reason is the DAC [Delivery Authentication Code] linked deliveries," she added.
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