The prices of unsubsidised liquefied gas (LPG) cylinders have been significantly increased in major cities in India. The price of the 14.2 kg unsubsidized LPG cylinder, used for domestic purposes, increased by Rs 50 in metropolitan cities including Delhi, Mumbai, Calcutta and Chennai. In Delhi and Mumbai, the 14.2kg cylinder now costs Rs 644, while in Calcutta it is priced at Rs 670.
Tariffs for commercial cylinders have also risen. Commercial 5kg LPG cylinder is now more expensive than Rs 18 in all cities. The price of 19 kg LPG also increased by Rs 36.50 to reach Rs 1296 in Delhi. In Mumbai, it is priced at Rs 1244 and in Kolkata at Rs 1351. Among the subways, it is more expensive in Chennai, according to Rs 1410.50, according to data from Indian Oil Corporation.
The domestic and commercial LPG rate is determined by the state oil companies. IOCL, the country’s largest fuel dealer, supplies LPG under the Indane brand.
At the beginning of this month, when the monthly LPG rates are revised, prices remained unchanged from the level on 1 November. It was the fifth consecutive month that prices remained constant. However, the mid-month price revision indicates a change from usual practice.
Previously, the price of a 14.2kg LPG with subsidy was Rs 594 in Delhi. In Calcutta it was Rs 620.50, in Mumbai Rs 594 and in Chennai it was Rs 610.
Indian families can enjoy the advantage of purchasing LPG cylinders at discounted rates for up to 12 cylinders in a year. Customers are required to pay the full price at the time of purchase. The subsidy is then credited to the customers’ bank accounts by the government.
Concerns about non-payment of benefits have been raised by several customers since May. It was mainly attributed to the collapse in the international oil price, and the increase in the domestic fill rate narrowed the gap between market and subsidized tariffs.