The price of 14.2 kg. Liquefied Petroleum Gas (LPG) cylinders for domestic use have been increased again by Rs. 50 in several Indian cities. After the latest price hike, a 14.2 kg domestic cylinder will cost now Rs 999.50 in Delhi, up from the previous price of Rs 949.50. In a span of just 45 days, LPG cylinders (14.2kg) have turned dearer by Rs. 100, making the domestic budget go through the roof.
Second Price hike in two months
Previously, the price of domestic LPG cylinders was increased by Rs 50 across India on March 22, after a freeze of six months since October last year.
Price hike in all Fuel Segments
On Saturday (07.06.2022), the price of cooking gas leapt by Rs 50 to rise to Rs 1,026 from Rs 976. Just one week ago, on May 1, the prices of 19 kg commercial LPG cylinders were also increased by Rs 102 from Rs 2,253 in Delhi. The prices were hiked by the same amount in other cities as well. Restaurants, eateries, tea stalls and others constitute the largest user segment of the 19 kg cylinder. The price of a 5kg LPG cylinder was also hiked to Rs 665 at the time. This could have an impact not only on household expenses but also on the price of street food.
Why the Price hike
The Russia-Ukraine war seemed to have cast its shadow on the international crude oil price, which resulted in a sharper rise in LPG price.
Price hike amid surging inflation
The country has been experiencing a surge in the inflation rate for some time now. To tackle inflation, the Reserve Bank of India has hiked its key lending rates by 40 basis points for the first after August 2018. According to an official statement, as of March 1, 2022, the total domestic LPG consumers in the country were 304.9 million. The recent price hike in domestic LPG cylinders will make the life of these citizens more difficult.
States cannot cut the Price
The hike in gas prices is irreversible as goods and service tax (GST) is applicable for LPG, unlike petrol and diesel prices. The Centre and the state can reduce some taxes to cool off the prices of petrol and diesel, but not so in the case of LPG. From September to February, there was a freeze in prices for five months. After the assembly elections in five states, the prices of petrol, diesel, LPG cylinders (both domestic and commercial) and jet fuel have been hiked continuously.
We hope that you will get to know some new information from this post. If you have any questions about this post or any other financial matter, please let us know in the comment box or email us at our email id [email protected]. If you like this post, share it with others and give others a chance to know and get updated information on various financial matters, click the bell icon so that you get notifications from us whenever we publish a new post.
Also Read: –