LPG cylinder up Rs 50 in 4th hike this year – Times of India

NEW DELHI: Domestic LPG — household cooking gas supplied in cylinders — became costlier by Rs 50 each on Wednesday as state-run retailers passed on the impact of higher international benchmark rate. In the absence of subsidy, the fourth increase since March is bound to further stretch household budgets grappling with high motor fuel prices and last month’s imposition of GST on condiments and daily consumables.
After the latest increase, a 14.2kg refill will cost Rs 1,053 in Delhi, Rs 1,052 in Mumbai, Rs 1,079 in Kolkata and Rs 1,068 in Chennai. Rates will vary by a few rupees within this range in other states because of difference in local levies.
Refill prices were last revised in May. The first increase on May 7 saw prices topping Rs 1,000 in Kolkata, Chennai and some parts of the country. The rates exceeded Rs 1,000 pan-India after the second revision on May 19.
The series of increases have turned the lack of subsidy a sore point with consumers. The government had scrapped LPG subsidy since May 2020, taking advantage of a fall in global energy prices due to the pandemic. But it is in no mood to restore the support when the cost of refills have hit record levels and argues such intervention is unsustainable and bad economics.

But as record rates subdued consumption by poor households, which were given LPG connections free of cost under the Ujjwala scheme, the Centre on May 21 announced a subsidy of Rs 200 on each refill. It is yet to be seen whether this will lift Ujjwala consumption from less than four refills a year.
The three state-run suppliers have paid more than Rs 1.14 lakh crore as subsidy to eligible consumers between May 2014 and May 22, according to their replies to Kerala-based RTI activist Govindan Nampoothiry.
LPG prices were held steady since October 6, 2021, when they were raised by Rs 15 per cylinder. The freeze was lifted on March 22 when prices were raised by Rs 50. Household LPG price stood at Rs 714 on January 1, 2020 in Delhi. It went up to Rs 858 in February that year but subsequently came down twice but remained north-bound till the freeze in October 2021.
Earlier last month, oil minister Hardeep Singh Puri had defended the increases and pointed out that the benchmark price of LPG shot up 37% in one (May) month, while domestic (cylinder) prices were raised 11%. “Subsidies are not good economics and cannot be there forever. They must have a downward curve and an expiry date. Otherwise, we will end up in a situation — like it is happening in Sri Lanka — where we don’t have money to provide fuel to people,” he had said during an interaction with reporters.
He insisted the government had provided subsidy to the needy by supplying three free LPG cylinders during the pandemic and continuing free foodgrain supply under the PM Garib Kalyan scheme.
“What are the three free LPG cylinders during the pandemic given to the Ujjwala connection holders if not subsidy? One must realise money is also needed for other welfare schemes and vaccination,” he had said.