In a major blow for consumers, the price of Liquefied Petroleum Gas (LPG) cylinder (14.2 kg) in the national capital has been hiked by a whopping ₹50 per unit. The new rates will be applicable from Monday. Post the price hike, a new cylinder in Delhi will now cost ₹769. This, for the unaware, is the third increase in LPG rates in Delhi since December last year.
On December 1, 2020, the LPG cylinder price was hiked by ₹50 per cylinder, followed by a hike of ₹50 on December 16.
Since July 2020, the price of LPG had remained unchanged at ₹594 a cylinder. This was the same rate at which subsidised LPG refills are also sold. However, post-lockdown, this price has gone up amidst rising demand for LPG.
The price of LPG gas cylinders is determined by state-run oil companies. The rate is revised on a monthly basis. The revision depends on international fuel rates and US dollar-rupee exchange rates, the prices can go up or down.
Though the government of India provides LPG subsidies, directly in the bank account of Indian customers, however, since May last year, most cooking gas customers have not received subsidies. This is because of the international oil price collapse and domestic refill rate increases that brought parity between subsidised and market rates.
The hike in the price of gas cylinder brings a double blow for the citizens as petrol and diesel prices in Delhi, over the past few weeks, have also surged to attain new highs. The price of petrol in Delhi has been flirting with Rs 90-95 mark.