LPG prices for 14.2 kg cylinder gassed up by Rs 50

Domestic 14.2 kg LPG cylinder's prices were increased by Rs 50 with effect from today in a move that will see the rate in Delhi go up to Rs 1,053.

Also, 5 kg domestic cylinder prices were increased by Rs 18. However, 19 kg commercial cylinder prices were cut by Rs 8.50.

This is the eighth straight increase in LPG prices by IOC since July 2021. This is the third increase in the LPG rate since May and the fourth this year.

The price was hiked by Rs 50 per cylinder on March 22 and again by the same quantum on May 7. Rates went up by Rs 3.50 per cylinder on May 19. Prices have gone up by Rs 244 per cylinder since June 2021. Of this, Rs 153.50 increase happened since March 2022.

Non-subsidised LPG costs Rs 1,052.50 per 14.2-kg cylinder in Mumbai, while it is priced at Rs 1,079 a bottle in Chennai and Rs 1,068.50 in Kolkata. Rates differ from state to state depending on the incidence of local taxes such as VAT. Prices are higher in states with higher taxes.

Common households pay non-subsidised rates for the cooking gas they buy, after the government restricted subsidy to just poor beneficiaries who got connections under the Ujjwala scheme.

The government also stated that Rs 200 per cylinder subsidy on cooking gas will be limited to only 9 crore poor women and other beneficiaries who got free connections under the Ujjwala scheme and the remaining users including households will pay the market price (also known as non-subsidised rate). Originally, non-subsidised cooking gas was the one that consumers used to buy after exhausting their quota of 12 cylinders at subsidised or below-market rates. However, the government stopped paying subsidy on LPG to households in mid-2020.

The government has been raising the prices of both domestic and commercial LPG cylinders for some time now, for which it has been slammed by the Opposition parties.

Meanwhile, this is the second time in July that prices of commercial cooking gas cylinders have been slashed. Earlier on July 1, the 19 kg LPG cylinder was made cheaper by Rs 198.

The security deposit for a 14.2 kg LPG cylinder will be Rs 2,200 instead of Rs 1,450 earlier. For a 5 kg cylinder, the deposit has been increased to Rs 1,150 from Rs 800 earlier.

Alongside, oil firms also hiked the price of commercial LPG cylinders -- the ones used by establishments like hotels and restaurants. It now costs Rs 2,012.50 per 19-kg cylinder in the national capital, up from Rs 2,021 per cylinder. 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 103.92 per barrel on Wednesday. International oil prices have been on the rise this year.

A global natural gas supply shortage is bumping up Asian prices to the highest levels this summer, prompting inflation fears across the region.

Supply disruption from Russia to the US is tightening the market, and intensifying competition between importers in Asia and Europe for a dwindling amount of fuel.