Fuelling worries, LPG prices go up by Rs 4 again

After a steep hike of Rs 50 on the prices of each cooking gas cylinder last month, another increase of Rs 4 has been done earlier this month owing to an increase in a dealer’s commission from Rs 21.94 to Rs 25.83 per cylinder.

Consequently, every cylinder of liquefied petroleum gas (LPG) now costs Rs 399.35 in Delhi, compared to Rs 345.35 a month ago.

The web site of Indian Oil Corporation, the country’s biggest supplier of domestic LPG under the Indane brand, says the price of its 14.2-kg LPG cylinder is Rs 395.35. However, its dealers are charging Rs 399.35 for each cylinder due to the change in commission.

Prices of domestic LPG cylinders, like diesel and kerosene are regulated by the government. On June 24, an empowered group of ministers had allowed the oil marketing companies — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — to increase the price of each LPG cylinder by Rs 50.

The increase came after a gap of one year when the price went up by Rs 35. Even after the increase of June 24, the oil marketers continue to lose Rs 291 on every domestic cylinder. The country has 115 million LPG customers.

Last month, the government had increased the commission of petrol pump operators on petrol and diesel after an agitation by the Federation of All India Petroleum Traders that represents 38,000 petrol pumps.