Based on the international benchmark rate of LPG and the exchange rate of US dollar and rupee, LPG cylinder rates are revised at the beginning of each month
Oil Marketing Companies(OMCs) today increased the price of liquified petroleum gas (LPG) cylinders. Price of domestic LPG cylinder with subsidy increased by ₹25.50 per cylinder with effect from today. Domestic cylinder weighing 14.2 kg will now cost ₹834.50 in Delhi. Price of 19 kg cylinder has also been increased by ₹76 and will cost ₹1,550 in Delhi, according to news agency ANI, quoting sources.
After the increase now the cooking gas in Mumbai and Delhi will be available for ₹834.5 per 14.2 kg cylinder as compared to ₹809 per 14.2kg cylinder earlier.
The increase is applicable across all categories, including subsidised and non-subsidised users.
LPG is available only at one rate, market price, across the country. The government, however, gives a small subsidy to select customers.
However, this subsidy has been eliminated in metros and major cities through successive price increases over the past couple of years. So, in places like Delhi, there is no subsidy paid to customers since May 2020 and all LPG users pay the market price, which currently is ₹834.50.
An oil company official said a small subsidy is paid to customers in remote and far-flung areas to make up for the higher price arising from freight charges.
"The price of 19 kg cylinder has also been increased by ₹76 and will cost ₹1,550 in Delhi," sources added.
Meanwhile, International oil prices have climbed in recent weeks on optimism of a quick recovery in fuel demand. Brent crude soared past the $75 per barrel mark, the first time since April 2019.
However, the oil marketing companies had reduced the price of commercial LPG cylinder by over ₹100 on June 1.
The last revision in the prices of LPG cylinders came in April when the rate of a cylinder was cut by ₹10. Previously, LPG cylinder prices were increased in February and March.
At the beginning of 2021, the price of an LPG cylinder in Delhi was ₹694. The price was first increased to ₹719 per cylinder in February. Further, on February 15, the price was increased to ₹769.
Meanwhile, on February 25, the price of the LPG cylinder was reduced to ₹794. In March, the price of the LPG cylinder shot up to ₹819.
And finally, after the reduction of ₹10 in early April, the price of domestic LPG in Delhi had gone up to ₹809. But with the recent hike, the prices of LPG cylinders have increased by ₹140.50 in 2021.
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