Commercial LPG cylinders hiked by Rs 100; will cost Rs 2,101

The price of a commercial LPG cylinder (19 kilograms) has been hiked by Rs 100 a piece to take it to Rs 2,101 from December 1. This is the highest price at which a commercial LPG cylinder is being sold in the national capital, toppling the previous high of Rs 2,013.50 a piece in January 2014. 

Prices have been hiked acr­oss the country in a similar proportion. On a per kg-basis, commercial LPG is now being sold at Rs 111 a kg in Delhi.

Sale price of commercial LPG cylinders has been hiked steadily from Rs 1,473.50 (Rs 77.55 per kg) in June 2021. LPG sold during this month was bought at a benchmark price of $489.21 a tonne in the international market. This benchmark has now risen to $841.33 a tonne, driving up prices for India, which imports nearly half its requirement. This is also the highest price ($841.33 a tonne) at which Saudi Aramco is selling LPG to India over the last four years.

Despite the significant price movement, sale price of domestic LPG cylinders has moderated. A 14.2 kg domestic LPG cylinder sold at Rs 809 a piece (Rs 56.97 per kg) in June 2021. The price rose to Rs 884.50 a piece (Rs 62.29 per kg) in September 2021 and has been kept unchanged since then.

The price moderation is a hit on the margins of public sector oil marketing companies (OMCs) as the government is citing a tight fiscal position for not disbursing any LPG subsidy in 2021-22. The Centre continues to subsidise freight for domestic LPG deliveries in far-flung areas.