According to state-owned oil companies operating in India, the country might be currently experiencing the biggest LPG price hike in its recent history.
Industry resources reported that the price of non-subsidized cooking gas has increased by a steep 86 rupees per cylinder during the start of this month, reflecting international trends. Also, LPG that was bought by those who have exhausted the quota of 12 14.2-kilogram cylinders per year at below market price or those who have given up their subsidies now costs 737.50 rupees. Just in the end of February, this product was priced at 651.50 rupees per 14.2-kilogram cylinder.
The price increase, which is now recorded as the steepest in India’s history, comes on back of 66.5 rupees per cylinder. Rates have been on the upswing since October last year and increased by 271 rupees per cylinder or 58% in six installments.
Similarly, the price of aviation turbine fuel (ATF) has also increased by marginal 214 rupees per kiloliter, coming on back of a 3% hike in the start of February.
However, an official statement said that these increases are in accordance with the increase in global LPG prices and do not affect consumers who are entitled to subsidies. It stated:
“However, there will be no impact on the LPG consumers receiving subsidized refills.”
It explains that consumers will pay 737 rupees for a new refill in Delhi. Then they will enjoy a subsidy amount of 303 rupees in their accounts, on an unchanged net price of 434 rupees.