LPG prices cross Rs 1,000-mark after a hike of Rs 3.50 per cylinder

The price was hiked by Rs 50 per cylinder on March 22 and again by the same quantum on May 7. Since April 2021, prices have risen by Rs 193.5 per cylinder.

FPJ Web DeskUpdated: Friday, May 20, 2022, 09:27 AM IST
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India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices. |

Cooking gas (LPG) price was on Thursday hiked by Rs 3.50 per cylinder, the second increase this month and the third in less than two months.

This takes LPG rate across the country over the Rs 1,000 threshold. The price was hiked by Rs 50 per cylinder on March 22 and again by the same quantum on May 7. Since April 2021, prices have risen by Rs 193.5 per cylinder.

Non-subsidised LPG will now cost Rs 1,003 per 14.2-kg cylinder in the national capital, up from Rs 999.50 previously. In Mumbai, it will cost Rs 1,002.5, Rs 1,029 in Kolkata and Rs 1,018.5 in Chennai.

Petrol and diesel prices however continue to be on freeze for the 43rd day in a row. The pause followed rates being hiked by a record Rs 10 per litre in a matter of 16 days beginning March 22.

Non-subsidised cooking gas is the one that consumers buy after exhausting their quota of 12 cylinders at subsidised or below-market rates.

However, the government pays no subsidy on LPG in most cities and the price of the refill that consumers, including the poor women who got free connection under the much-talked Ujjwala scheme, is the same as that for non-subsidised or market price LPG.

Rates differ from state to state depending on the incidence of local taxes such as VAT. Prices are higher in states with higher taxes.

Alongside, oil firms have also hiked the price of commercial LPG cylinders - the ones used by establishments like hotels and restaurants - by Rs 8 per cylinder to Rs 2,354 per 19-kg bottle. On May 1, the price of a commercial LPG cylinder was increased by Rs 102.50 to Rs 2,355.50 but on May 7 it was reduced to Rs 2,346.

International oil prices have been on the rise this year. They jumped to a 13-year high of USD 140 per barrel in March before shedding some of the gains. Brent was trading at USD 110.13 per barrel on Thursday.

To compound things, the Indian rupee tumbled to Rs 77.74 to a dollar, making imports costlier.

India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.

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