LPG price hike: Cooking gas price gets costlier by 50 rupees

The price of Liquefied Petroleum Gas (LPG) cylinders for domestic use got costlier by Rs 50 in Delhi, Mumbai, Kolkata, and other cities, according to a notification issued by oil marketing companies on Saturday, May 7.

After the latest price hike, a 14.2 kg domestic cylinder will cost Rs 999.50 in Delhi from today, up from the previous price of Rs 949.50. The price increase for LPG gas cylinders today comes after a month of rising crude oil prices globally, according to the reports.

Previously, on May 1, the price of 19 kg commercial LPG cylinders in Delhi was raised by Rs 102 from Rs 2,253, Prices were raised by the same amount in other cities. Restaurants, eateries, tea stalls, and others are the most frequent users of the 19 kg cylinder. At the time, the price of a 5kg LPG cylinder was also increased to Rs 665.

On March 22, the price of domestic LPG cylinders had  increased by Rs 50 across India, following a six-month freeze that began in October of last year This was done following a sharp increase in the price of gasoline and diesel during the time of rising crude oil prices.

LPG cylinder prices differ from one state to another due to state-specific taxes. The central government, however, provides a small subsidy to select customers to make up for the higher price arising from freight charges. Under the government's subsidy scheme, each Indian household is entitled to 12 cylinders per year. The amount of the central government's subsidy varies from month to month.

LPG prices are revised at the beginning of each month based on the previous month's average international rate for benchmark fuel and foreign exchange rate.

The price increase for LPG cylinders today falls in line with rising inflation rates in the country. Retail inflation in March exceeded expectations, and it is expected to rise further in April. To combat inflation, the Reserve Bank of India raised key lending rates by 40 basis points for the first time since August 2018. In its out-of-schedule monetary policy committee meeting, the RBI predicted that daily commodity prices would remain high in the face of global inflation.

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