LPG price increased by ₹50, Oppn targets govt
NEW DELHI: Cooking gas on Saturday became costlier by ₹50 per cylinder, the second rate hike in under two months, as the price for about 304.9 million households crossed ₹1,000 for a 14.2kg refill in many places mainly because of rising international energy costs due to the Ukraine war.
According to the Indane price published by dealers of state-run Indian Oil Corporation (IOC), nonsubsidised domestic liquefied petroleum gas (LPG) on Saturday jumped to ₹999.50 per cylinder in Delhi. However, there has been nil subsidy to consumers in several places, including Delhi since May 2020. Subsidies in other places (far-flung areas) is negligible often below $50 per cylinder.
Prices of the fuel vary across the country based on local levies and transportation costs. For instance, its cost in Gujarat’s Navsari town is now ₹1,008.50 per 14.2 kg cylinder, ₹1,026 in Ludhiana (Punjab), ₹1,015.50 in Chennai (Tamil Nadu) and ₹1,098 in Patna (Bihar).
India’s cooking gas market is dominated by three state-run oil marketing companies – IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL). They last hiked its rate by ₹50 per cylinder on March 22 this year to ₹949.50 in Delhi after over a year. Earlier, the domestic LPG prices were revised by ₹15 on October 6, 2021, leading to a price of ₹899.50 per cylinder in Delhi.
This is not the first time that cooking gas prices have been hiked steeply. In January 2014, it was ₹1,241 per cylinder in Delhi. The rates remained volatile in the aftermath. Since May 1, 2020 (at ₹581.5 per cylinder), the prices only moved up barring a ₹10 per cylinder price reduction in April 2021, according to official data.
LPG and natural gas are key fuels for Indian households. According to an official statement, as on March 1, 2022, total domestic LPG consumers in the country were 304.9 million. Besides, 7.75 million domestic consumers were also using piped natural gas (PNG). Indraprastha Gas Limited (IGL) in mid-april increased prices of domestic PNG by ₹4.25 per unit to ₹45.86 per standard cubic meter (SCM) in Delhi.
Companies on May 1 raised prices of commercial LPG cylinders by 102.50 per 19 kg to ₹2,355.50 from ₹2,253 and a hike in domestic LPG was expected.
Two executives in state-run oil companies said on condition of anonymity that the global oil market is volatile and they have tacit political pressure to shield consumers from steep price hike, especially when inflation has spiked beyond the tolerance level of 6% specified by the Reserve Bank of India (RBI). “Petrol and diesel prices will be increased soon as revenue losses on them are unbearable to the extent of about ₹8 on petrol and over ₹20 on diesel. It is only a matter of time – either Centre and states cut taxes or OMCS [state-run oil marketing companies] will be forced to raise rates,” one of the executives said.
Unable to pass on the surging global crude oil prices to the consumer under tacit political pressure for the last one month, domestic oil companies have resorted to a range of emergency measures such as stopping credit facilities to pump owners and rationing fuel supplies to retail outlets, leading to many pumps on the verge of getting dry, HT reported on Friday. State-run fuel retailers – IOC, BPCL and HPCL – have frozen petrol and diesel rates since April 5, 2022.
The Opposition criticised the Centre for the price rise. In a series of tweets, Congress leader Randeep Singh Surjewala asked the Centre to restore the subsidy level that existed in 2014. “The Modi government has hit the poor and middle-class by removing gas subsidy…”
West Bengal chief minister Mamata Banerjee tweeted: “The Union government must immediately STOP TORMENTING the people of India! By repeatedly increasing #fuel prices, #LPG prices & prices of #essentialcommodities, @Bjp4india is actually conducting a #Greatindianloot. PEOPLE ARE BEING FOOLED. Sad to see the Media SILENT & BLIND.”