LPG cylinder prices have gone up for the second month
LPG rates are changed at the beginning of every month
NEW DELHI :
In tune with a rebound in international rates, the price of liquified petroleum gas (LPG) cylinders was increased for the second consecutive month today. Indian Oil's non-subsidised 14.2 kg cylinder, Indane, will cost ₹594 in both Delhi and Mumbai from today. While the rate has been hiked by just Re 1 in Delhi, the price hike in Mumbai is ₹3.5 a cylinder.
Last month, the retail selling price of LPG in Delhi was hiked by ₹11.50 per cylinder. The current spate of rate hike comes after three consecutive months of rate cuts which made LPG cylinders cheaper by ₹277. In February, LPG cylinder rates had gone upto ₹858.50 (Delhi) but in March, as coronavirus fears started to impact global fuel demand, the rate went down to ₹805.50. In May, LPG price was reduced from ₹744 to ₹581.50 per cylinder as the energy market went into a bear mode.
While petrol and diesel prices are revised on a daily basis, LPG rates are changed at the beginning of every month.
LPG cylinders are sold at the market price in India but the government transfers the subsidy directly into the account of eligible consumers. The subsidy is the difference between market and subsidised price of cooking gas. After exhausting their quota of 12 cylinders of 14.2 kg each at subsidised prices, domestic household consumers have to buy non-subsidised LPG cylinders.
State retailers' LPG sales rose 6% to 960,000 tonnes in the first half of June compared with a year earlier, although consumption was down 20% from May first half.