In charts| Average price of LPG highest in five years

LPG prices on the rise (Representative image)

The price of a liquified petroleum gas (LPG) cylinder increased by Rs 25 on September 1, taking the price of a non-subsidized 14.2 kg cylinder in Delhi to Rs 884.50, ANI reported on Wednesday. The price of a commercial (19-kg) cylinder was increased by Rs 75 to Rs 1,693.

This is the seventh time cooking gas rates have been increased in 2021, which has added Rs 190 to the price of a 14.2 kg cylinder in Delhi.

The Congress party has been attacking the government over the rise in petrol, diesel, and LPG prices and has been demanding a reduction in taxes imposed by the central government.

“The prices of petroleum products in the country are linked to the price of respective products in the international market,” the government said in a reply to a Rajya Sabha question on August 4, 2021.

“The Government continues to modulate the effective price to consumer(s) for Subsidized Domestic LPG. The prices of non-subsidized Domestic LPG are however determined by the OMCs in line with changes in the international markets. The subsidy on the product increases/decreases with the increase/decrease in the product price in (the) international market and (the) decision of (the) Government on subsidy,” it said.

In an earlier reply to the Lok Sabha on August 2, the government said LPG prices were based on Saudi Contract Price, an international benchmark. This has increased from $359 per metric tonnes to $ 607 between October 2020 and April 2021.  India imports at least 55 percent of its LPG requirement.

Here’s what the trend looks like:

The situation is similar in neighbouring countries as well, with prices in Nepal and Pakistan being higher than Delhi on June 1, 2021. Prices in Bangladesh and Sri Lanka are lower.

In terms of LPG price build-up in India, considering prices as on August 1, of the total retail selling price, about 5 percent are taxes and 7 percent constitute dealers and distributors commission.