LPG Cylinder Price Hiked by ₹29 Amid Rising Fuel Costs

Second LPG Price Hike in Three Months

The current price hike would be effective across the country but the final retail price for one cylinder would differ from city to city depending upon local taxes and transportation costs. 

It follows a ₹ 60 hike a cylinder on March 7 after the conflict in West Asia resulted in a shock in energy supplies and drove international fuel prices. This increase was only a "partial compensation" for the losses that the country suffered on domestic sale of LPG. 

This hike comes at a time when various other fuels also increased prices. Petrol and diesel price was raised by cumulatively ₹ 7.50 a litre since mid-May whereas CNG prices were raised by about ₹ 6 a kg.

Political Row Over Rising Prices 

The development has led to a prominent political issue with Congress accusing the Narendra Modi government of being in a sinister conspiracy to tax the people with already spiraling cost of living and the Center arguing that consumers are "protected" from a complete impact of global energy shock.

The Congress again attacked the government. The party said, "'Inflation Man Modi' has cracked the whip again. Now the domestic gas cylinder has been made 29 rupees more expensive. Modi's formula is clear, extort from the public, fill the coffers of rich friends.”

Global Market Pressures Impact LPG Rates

It is said that a domestic LPG cylinder supply cost has now crossed ₹ 1,600 in view of skyrocketing international prices as a result of the war in West Asia and the disruption in transit through the Strait of Hormuz, which is a major route for energy supplies from the Gulf.

The price of LPG in India is linked to Saudi Contract Price the global benchmark set by Saudi Aramco-which, the government claims, has increased by 46 per cent since February.