Will petrol and diesel prices rise after LPG? Government has revealed its plan
Amidst the sharp increase in LPG prices, government sources clarified that there is no possibility of further increases in petrol and diesel prices
Domestic cooking gas (LPG) prices were hiked significantly on Saturday. The price of a non-subsidized 14.2-kilogram cylinder has been increased by ₹60. This is the second price increase in the last 11 months. The government says that oil companies made bumper profits earlier this year and have sufficient financial capacity to withstand such an impact.
Due to the sharp rise in global energy prices caused by the ongoing crisis in West Asia, the Indian government has increased the price of domestic LPG cylinders by ₹60. However, it is a matter of relief that the government has refused to increase petrol and diesel prices for now.
Sources clarified that despite the increase in LPG prices, the government has made it clear that there will be no immediate increase in petrol and diesel prices, as the three fuel marketing companies—Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL)—made bumper profits earlier this year and have sufficient financial capacity to withstand such an impact.
Prices Stable Since 2022
Petrol and diesel prices in India have remained stable since April 2022. Companies are adjusting their profits and losses according to fluctuations in crude oil prices to avoid additional burden on consumers.
How much will an LPG cylinder cost in Delhi now?
According to the Indian Oil Corporation (IOC) website, following this significant increase, a non-subsidized 14.2 kg domestic LPG cylinder in Delhi now costs ₹913, up from ₹853 previously. In Mumbai, it has risen to ₹912.50, in Kolkata to ₹939, and in Chennai to ₹928.50. The price difference is due to local sales tax or VAT at the state level.
Beneficiaries of the Pradhan Mantri Ujjwala Yojana (who have been provided free LPG connections since 2016 and number over 100 million) will also have to bear this increase. They receive a subsidy of ₹300 per cylinder (up to a maximum of 12 refills per year), so they will now have to pay ₹613 per cylinder.
Top government sources stated that this increase was due to the sharp rise in global energy prices. Despite this, the price of LPG in India remains below the breakeven level (cost-effectiveness), which is around ₹1,050 per cylinder.
They said that since an average family uses 4-5 cylinders a year, this increase amounts to only 80 paise per day per family and only 20 paise per person in a family of four.
