Updated: May 19, 2022 10:34:39 am
The price of domestic LPG was hiked by Rs 3.50 per cylinder on Thursday, in the second such move this month amid high international crude oil prices. With this, the cost of a cylinder now crosses the Rs 1,000-mark, according to news agency ANI.
The cost of a commercial cylinder has also been hiked by Rs 8. With the price rise, a domestic LPG cylinder will cost Rs 1,003 in Delhi and Mumbai, Rs 1,029 in Kolkata, and Rs 1,018.5 in Chennai from today.
The price of LPG is linked with international prices of LPG, which have been rising as a result of supply concerns due to the Russia-Ukraine conflict. The price of LPG has been rising consistently since November 2020, with the price of a 14.2 kg cylinder in Delhi rising by over Rs 400 or nearly 70 per cent during the period.
A steady increase in crude oil prices due to a recovery in demand post-Covid related restrictions, slow restoration of crude oil production by oil-exporting countries and the Russia-Ukraine conflict have contributed to the rising LPG prices.
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The rise in prices has come at a time when subsidies on cooking gas have been removed for most consumers. In May 2020, the government halted subsidies on LPG cylinders through its direct benefit transfer scheme to all consumers barring customers in remote areas who face high inland freight costs from ports to bottling plants.
Over 70 per cent of Indian households used LPG as their primary cooking fuel and 85 per cent had LPG connections in march 2020, according to study by the Council on Energy, Environment and Water.
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