LPG cylinder price hiked; check new rates here
What's the story
The state-run oil marketing company Indian Oil Corporation (IOC) on Wednesday increased the rates of LPG cylinders by up to Rs. 149 per cylinder. The hiked prices are effective from today. This is the sixth consecutive month that prices of cooking gas cylinders have been hiked. The latest revision is also the steepest hike in six years. Here are more details.
Details
Take a look at the new LPG rates
In Delhi, the latest price hike raises LPG rates to Rs. 858.50 from Rs. 714 in January; a hike of Rs. 144.5. In Mumbai, the rates were increased to Rs. 829.50 from Rs. 684.50 the previous month. In Chennai, the LPG rates were hiked to Rs. 881 from Rs. 734 in January. In Kolkata, LPG rates were increased by Rs. 149 to Rs. 896.
Subsidy
Government doubles LPG subsidy to match price hike
Accordingly, the government subsidy was also increased by almost twice the amount to keep the cylinder outgo unchanged. Industry officials told PTI that the government subsidy payout to domestic users has been raised from Rs. 153.86 per cylinder to Rs. 291.48 per cylinder. Notably, domestic LPG users are entitled to 12 14.2-kg cylinders at subsidized rates.
Information
LPG subsidy raised to Rs 312.48 for PMUY beneficiaries
For beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY), the LPG subsidy has been increased from Rs. 174.86 per cylinder to Rs. 312.48 per cylinder. Under the scheme, the government notably issued 8 crore free LPG connections to poor women.
History
Steepest LPG rate hike since January 2014
The last increase in LPG rates happened on January 1, when the prices were hiked by Rs. 20. LPG rates have been raised consecutively since August last year when LPG was sold at a non-subsidized rate of Rs. 574.50 in Delhi. Wednesday's price revision marks the steepest hike since January 2014, when LPG rates shot up by Rs. 220 per cylinder to Rs. 1,241.
Reason
Why were the LPG rates hiked?
The government revises LPG rates on the first of every month on the basis of the average international rate for benchmark fuel and foreign exchange rate in the month before. The repeated price hikes since August are due to the increase in prices in the international market. Notably, 84% of India's oil needs are met by imports.