Hike in prices of both household and commercial LPG cylinders

According to digital finance portal Goodreturns, the price of domestic liquefied petroleum gas (LPG) cylinders in Delhi has increased by ₹50 from Wednesday. The new price for a non-subsidised 14.2 kg cylinder in Delhi will be ₹1,103. This hike in price comes after a year since the last revision was made in 2022. In the last year, the price was increased four times, with a cumulative hike of ₹153. The commercial cylinder’s price of 19 kg has also been hiked by ₹350 and will be sold at ₹2,119.50 in the national capital.

In January 2023, the price of commercial LPG cylinders was raised by ₹25, and it was being sold at ₹1,768 in Delhi. The prices of domestic cooking gas vary from state to state due to local taxes. At the beginning of each month, oil marketing companies announce new prices of LPG cylinders if there are any changes.

The prices of domestic LPG cylinders are affected by crude oil prices in the international markets. On Tuesday, oil prices increased by nearly 2% due to hopes for a strong economic rebound in China. It offset the concerns about US interest rate hikes, which could result in a decrease in consumption in the world’s biggest economy.

All households can avail 12 subsidised 14.2 kg cylinders every year. Any additional requirement needs to be bought at market prices. The PAHAL subsidy scheme (Direct Benefit Transfer of LPG) is based on several factors, including foreign exchange rates and crude oil prices.

The latest hike in LPG cylinder prices has come as a shock to many people. The increase in LPG cylinder prices will have an immediate impact on the budget of households that depend on LPG for cooking. The rise in commercial LPG cylinder prices will affect small and medium businesses that use them for cooking purposes. The hospitality and catering industry will also be affected by this hike in prices.

According to reports, there has been a hike in the price of LPG cylinders due to the increase in global oil prices. The international crude oil prices have been fluctuating in the past few months, which has led to the volatility in LPG prices. Since India imports crude oil, any change in international prices has a direct impact on domestic prices. The government also charges taxes on LPG, which affects its final price.

The latest price hike could lead to an increase in the inflation rate in the country. It is expected that the rise in LPG prices could trigger a hike in prices of other essential commodities as well. Many experts believe that the Reserve Bank of India may increase interest rates to combat inflation. This could further impact the already struggling economy, which has been severely affected by the COVID-19 pandemic.

The government may consider reducing taxes on LPG cylinders to provide relief to consumers. The government has provided subsidies on LPG cylinders to reduce the burden on consumers. However, due to the rising prices of crude oil, the subsidy bill has increased significantly in the last few years. The government has been phasing out subsidies to reduce the fiscal deficit. The latest hike in LPG cylinder prices is expected to have a significant impact on households and businesses. The rise in LPG prices is due to the increase in global crude oil prices and taxes imposed by the government. The government may consider reducing taxes or providing more subsidies to provide relief to consumers. The hike in LPG prices could lead to an increase in inflation and further affect the struggling economy.