LPG price hiked for 5th month today. Check latest rates in top cities1 min read . Updated: 01 Jan 2020, 04:42 PM IST
- LPG prices are now inching back to May-June 2019 highs
- LPG rates have gone up by ₹139.50 per cylinder in the last 5 months
NEW DELHI : LPG cylinder prices were hiked for the fifth consecutive month today, this time by ₹19 a cylinder. Till December 31, a 14.2 kg liquefied petroleum gas (LPG) cylinder was priced at ₹695 in New Delhi but the rate has now gone up to ₹714. State-run fuel retailers change LPG cylinder rates every month, based on international benchmark rates.
According to Indian Oil, which retails Indane LPG cylinders, the price of a 14.2 kg LPG cylinder has now been revised to ₹714 in Delhi, ₹747 in Kolkata, ₹684 in Mumbai and ₹734 in Chennai.
Similarly, the price of a 19 kg LPG cylinder has been revised to ₹1241 in Delhi, ₹1308.50 in Kolkata, ₹1190 in Mumbai and ₹1363 in Chennai. The revised prices are effective from January 1, 2020.
LPG cylinder rates are now inching back to May-June 2019 levels, when it was the highest in the last year. In September, LPG cylinder rates had fallen to a low of ₹590 in Delhi following a slump in the international market over US-China trade tensions. Since then, prices have been rising.
Besides international rates, LPG prices are also dependent on the exchange rate of US dollar-rupee. The home currency ended 2019 with 2.28% annual loss at 71.36 against US dollar.
Fuel retailers sell LPG cylinders at the market price but the government subsidises 12 cylinders each household per year by providing direct subsidy. When international rates move up, the government provides a higher subsidy. But as per tax rules, GST on LPG has to be calculated at the market rate of the fuel. The government may choose to subsidize a part of the price, but tax will have to be paid at market rates. This leads to an increase or decrease in the price of subsidised cylinders.
LPG consumption has surged 6% to 2.18 million tonnes on the back of government's push for the use of cleaner fuel in household kitchens in rural areas in place of firewood to check pollution and safeguard the health of women. Minister for Petroleum and Natural Gas Dharmendra Pradhan had recently said that more than 95% households in India now have access to LPG.