Domestic LPG cylinder price hiked by Rs. 50: Check rates
What's the story
The price of the 14.2kg liquefied petroleum gas (LPG) cylinder has been hiked by Rs. 50 with effect from Saturday. This is the second hike in less than two months as the price of domestic LPG cylinders was increased by Rs. 50 across India on March 22, too. Notably, domestic LPG cylinder prices were earlier on freeze for six months since October last year.
Context
Why does this story matter?
Every household in the country is entitled to 12 14.2kg LPG cylinders at subsidized rates in a year. Additional purchases beyond this number are to be made at the market price. However, the rates of domestic LPG cylinders vary from state to state due to local taxes. The fuel retailers generally revise the prices of LPG cylinders at the beginning of every month.
Details
How much will cooking gas cost in major cities now?
After the latest price hike, cooking gas will now cost Rs. 999.50 per cylinder in Delhi as well as in Mumbai. In Kolkata, customers will now have to pay Rs. 1,026 for one domestic LPG cylinder. The same will cost Rs. 1,015.50 in Chennai and Rs. 1,037.50 in Lucknow, Rs. 1,098 in Patna, Rs. 1,002 in Bengaluru, and Rs. 1,052 in Hyderabad.
Commercial cylinders
Commercial LPG cylinder price hiked on May 1
On May 1, prices of 19kg commercial LPG cylinder were increased by Rs. 102. To recall, prices of commercial LPG cylinder were hiked twice earlier too—on March 1 and April 1—by Rs. 105 and Rs. 250, respectively. However, its price was reduced by Rs. 9 on March 22. The price of a 5kg LPG cylinder was also hiked to Rs. 665 at that time.
Information
How is LPG price determined?
LPG prices are determined at the beginning of every month based on the average international rate for benchmark fuel and the foreign exchange rate in the preceding month. The latest price hikes come amid rising crude oil prices globally.
Inflation
Retail inflation rising in India
The latest price hike comes as inflation rates rise in the country. Reportedly, the retail inflation based on Consumer Price Index (Combined) is likely to have risen up to 7.7% in April. The retail inflation in March, too, has reportedly exceeded the mandated limit. To tackle this, the Reserve Bank of India recently hiked its key lending rates by 40 basis points on Wednesday.