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Prices of non-subsidized LPG cylinders hiked by a steep Rs86 per cylinder

LiveMint logoLiveMint 01-03-2017 PTI

New Delhi: The price of non-subsidised cooking gas liquefied petroleum gas (LPG) was hiked by a steep Rs86 per cylinder on Wednesday, reflecting international trends.

Non-subsidised LPG, bought by those who have either given up their subsidies or exhausted the quota of 12 bottles of 14.2-kg in a year at below market price, will now cost Rs737.50. It was priced at Rs651.50 per 14.2-kg cylinder till Tuesday, according to state-owned oil companies.

The hike, steepest in the history, comes on back of Rs66.5 per cylinder increase effected from 1 February. Rates have been on the upswing since October, 2016. A non-subsidised LPG cylinder was priced at Rs466.50 in Delhi in September and has risen by Rs271 per bottle or 58% in six instalments.

Oil firms also raised price of subsidized cooking gas by a marginal 13 paisa to Rs434.93 per 14.2-kg cylinder. This follows a 9 paise increase effected from 1 February. Prior to these two marginal price hikes, subsidised cooking gas rates had gone up eight times of nearly Rs2 per cylinder each.

Aviation turbine fuel (ATF) price was also raised by a marginal Rs214 per kilolitre to Rs54,293.38 per kl. The increase comes on back of a 3% hike on 1 February. Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.

An official statement said the increase in non-subsidised LPG rates were in “line with the rise in global LPG product prices.” “However, there will be no impact on the LPG consumers receiving subsidised refills,” it said.

Giving an illustration, it said the consumer will pay Rs737 for a new refill in Delhi and will receive subsidy amount of Rs303 in his/her account and the net price for the consumer will be Rs434, which remains unchanged. “Thus, there will be no net impact of the increase in price of non-subsidised cylinder on the LPG consumers receiving subsidised refills,” it added.

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