Domestic 14.2 kg LPG cylinder rates have increased by Rs 50 with immediate effect. As a result, the cost in Delhi has climbed to Rs 1,053.
The cost of a 5 kilogramme household cylinder was also hiked by Rs 18. The cost of a 19 kilogramme commercial cylinder was reduced by Rs 8.50.
Since July 2021, IOC has increased the cost of LPG eight times in a row. The LPG rate has increased three times since May, totaling four since the beginning of the year.
On March 22 and May 7, the price per cylinder increased by Rs 50 each time. On May 19, prices increased by Rs 3.50 per cylinder. Since June 2021, prices have increased by Rs 244 per cylinder. This increased by Rs 153.50 from March 2022.
Non-subsidized LPG is priced at Rs 1,052.50 for a 14.2-kg cylinder in Mumbai, Rs 1,079 for a bottle in Chennai, and Rs 1,068.50 for a bottle in Kolkata. Based on the prevalence of municipal taxes like the VAT, rates vary from state to state. States with greater taxes have higher prices.
Since the government only allowed impoverished recipients who received connections through the Ujjwala system to receive subsidies, common households must pay non-subsidized prices for the cooking gas they purchase.
The government further declared that only 9 crore impoverished women and other beneficiaries who received free connections under the Ujjwala plan would be eligible for the Rs 200 per cylinder subsidy on cooking gas; all other users, including homes, would be required to pay the market cost (also known as non-subsidised rate). After using up their allotted 12 cylinders, users used to purchase non-subsidized cooking gas at subsidised or below-market prices. However, in the middle of 2020, the government discontinued providing LPG subsidies to families.
The Opposition parties have criticised the administration for boosting the cost of LPG cylinders for both household and commercial use for a while now.
In the meantime, the cost of commercial cooking gas cylinders has decreased twice in July. The 19 kilogramme LPG cylinder was already reduced by Rs 198 on July 1.
Instead of the previous Rs. 1,450, the security deposit for a 14.2 kilogramme LPG cylinder will now be Rs. The deposit for a 5 kilogramme cylinder has increased from Rs 800 to Rs 1,150.
Oil companies increased the cost of commercial LPG cylinders, which are used in places like hotels and restaurants. In the national capital, the price of a 19-kg cylinder has increased to Rs 2,012,50 from Rs 2,021. This year, there has been an increase in the price of oil globally. Before losing some of the gains, they soared to a 13-year high of USD 140 per barrel in March. On Wednesday, the price of Brent was USD 103.92 a barrel. This year, there has been an increase in the price of oil globally.
As a result of a worldwide natural gas supply crisis, Asian prices have reached their highest levels this summer, raising concerns about inflation throughout the continent.
The market is becoming more competitive amongst importers in Asia and Europe for a limited supply of gasoline as a result of the disruption in supply from Russia to the US.