You are here: Home » Economy & Policy » News
Business Standard

LPG price may be hiked next week; petrol, diesel rates up again

LPG rates were last hiked by Rs 15 per cylinder on October 6, taking the total increase in rates since July to Rs 90 per 14.2-kg cylinder

Topics
LPG | petrol | diesel

Press Trust of India  |  New Delhi 

LPG, cylinder

Cooking gas prices may be hiked next week after under-recovery on the fuel widened to over Rs 100 per cylinder, sources said insisting that the rate hike, including the quantum of increase, is dependent on government permission.

If allowed, this will be the fifth increase in cooking gas rates across all categories households using subsidised gas for cooking and heating purposes, non-subsidised fuel and industrial-sized gas.

rates were last hiked by Rs 15 per cylinder on October 6, taking the total increase in rates since July to Rs 90 per 14.2-kg cylinder.

Sources with direct knowledge of the matter said state-owned oil marketing companies have not been allowed to align retail selling price with the cost, and no government subsidy has so far been approved to bridge the gap.

The under-recovery or losses on sales have mounted to over Rs 100 per cylinder after international energy prices soared to multi-year high, they said.

While Saudi LPG rates have jumped by 60 per cent to USD 800 per tonne this month, international benchmark Brent crude oil is trading at USD 85.42 per barrel.

"LPG is still a controlled commodity. So, technically, the government can regulate the retail selling price. But, when they do that the oil companies have to be compensated for the under-recovery (or losses) they incur on selling LPG at rates below the cost," one of the sources.

The government last year eliminated subsidies on LPG by bringing retail prices at par with the cost through periodic hikes. But, unlike and diesel, whose pricing has been decontrolled, the government has not official announced deregulation of LPG rates.

"So far, there is no indication that the compensation or subsidy will be restored as the gap between cost and retail price has widened," the source said.

In case the government is not willing to bear subsidy, retail prices have to increase, he said adding that the increases might be moderated to spare consumers of any steep burden.

Currently, cooking gas costs Rs 899.50 per cylinder in Delhi and Mumbai, and Rs 926 in Kolkata. This is the rate that domestic households who are entitled to 12 cylinders of 14.2-kg each at subsidised rates, poor households that got free connections under the Ujjwala scheme and industrial users pay.

Meanwhile, after a two-day pause, and prices on Wednesday were again hiked by 35 paise per litre each, according to a price notification of state-owned fuel retailers.

now costs Rs 107.94 a litre in Delhi and Rs 113.80 in Mumbai. is now priced at Rs 96.67 a litre in Delhi and Rs 104.75 in Mumbai.

While petrol has already hit the Rs 100-a-litre mark or more in all major cities of the country, has touched that level in over one-and-a-half dozen states and UTs from Jammu & Kashmir to Tamil Nadu.

Prices differ from state to state, depending on the incidence of local taxes.

Petrol price has been hiked on 22 occasions since September 28, when a three-week-long hiatus in rate revision ended. In all, prices have gone up by Rs 6.75 a litre.

Diesel rates have been increased by Rs 8.05 per litre in 24 hikes since September 24.

Prior to that, the petrol price was increased by Rs 11.44 a litre between May 4 and July 17. The diesel rate had gone up by Rs 9.14 per litre during this period.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 27 2021. 16:16 IST
RECOMMENDED FOR YOU
.