The price of domestic cooking gas (LPG) cylinders has been increased by Rs 29. The central government has issued a clarification supporting this decision. The government said that despite the sharp increase in international gas prices, households in India are getting cooking gas at cheaper rates compared to other countries. The price of a 14.2 kg domestic LPG cylinder in Delhi has now increased to Rs 942, which was earlier Rs 913. Beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) will get a subsidy of Rs 300 four times a year, and the cylinder will be available at Rs 642. However, last year, it was announced that this subsidy would be provided nine times a year.
LPG cylinder price hiked by Rs 89 so far—Earlier, on March 7, the domestic cooking gas price was increased by Rs 60 per cylinder. This has taken the total cost of a 14.2 kg cooking gas cylinder to Rs 89. Before the revision, public sector petroleum companies were losing Rs 703 on every cylinder sold. The government also explained that due to geopolitical tensions in West Asia and supply disruptions in the Strait of Hormuz, the global benchmark Saudi contract price for LPG has increased by about 46 percent since February. As a result, the actual cost of a domestic LPG cylinder has crossed Rs 1,600.
‘Oil companies are bearing a loss of about Rs 60,000 crore’: The government said that domestic consumers pay only Rs 942. A large part of the remaining cost is borne by public sector petroleum companies and the government. According to the government, the loss on domestic LPG in the last financial year reached about Rs 60,000 crore, as against Rs 41,338 crore in the previous year. To partially offset this loss, the central government has sanctioned a compensation of ₹30,000 crore to petroleum companies.
‘LPG prices lower than in Pakistan, Nepal, and the US’: The government also said that to maintain LPG availability in the country during the crisis, domestic production was increased by more than 60 percent. Additional imports were made from countries like the US, Canada, and Algeria. Domestic LPG prices in India are still lower than in many countries, including Pakistan, Nepal, Bangladesh, and Sri Lanka, and developed countries like the US, Australia, and Canada.
