The price of domestic liquefied petroleum gas (LPG) cylinders has been hiked by Rs 15. After the hike, a non-subsidised 14.2-kilogram cooking gas cylinder will cost Rs 899.50 in Delhi. LPG cylinder rates have increased by an equal amount in other parts of the country

State-run oil companies have increased cooking cylinder prices by Rs 15, marking four straight months of upward revision in rates. It may be noted that LPG prices are revised every month. Non-subsidised LPG cylinder rates were hiked by Rs 25 in September, July and August.

Read | Domestic LPG cylinder rates hiked by Rs 25 for 3rd straight month

Cooking gas prices are on the rise due to an overall increase in natural gas prices. Domestic natural gas price was hiked by 62 per cent last week, marking the first increase in rates since April 2019.

Besides the natural gas price hike, the other factors that determine LPG cylinder prices in the country are the exchange rate of the rupee against the US dollar and the global benchmark rate. It is worth mentioning that global natural gas prices have also seen a sharp increase alongside crude oil prices.

However, the price hike is much lower in comparison to the hike in natural gas prices, according to executives from major state-run oil companies. OMCs have moderated the price of cooking gas in a bid to maintain affordability, reported Business Standard.

Executives told the newspaper that Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) have held back LPG price hikes by around Rs 100 for a 14.2-kilogram domestic cylinder.

An executive quoted in the report said LPG prices have gone up sharply but OMCs are not transmitting the full hike to customers. “At present prices, OMCs are absorbing Rs 100 per domestic cylinder,” the executive told the newspaper.

LPG RATES IN MAJOR CITIES

A 14.2-kilogram non-subsidised gas cylinder costs Rs 899.50 in Delhi and Mumbai. It costs Rs 887.50 in Bengaluru, Rs 911 in Kolkata and Rs 900.50 in Chennai.

It has gone up to Rs 893.50 in Gurugram, Rs 974.50 in Patna, Rs 882.50 in Noida, Rs 886 in Bhubaneshwar, Rs 937 in Hyderabad, Rs 922.50 in Lucknow and Rs 888.50 in Jaipur.

Rising cooking gas prices could hurt citizens who are already bearing the brunt of high fuel and energy rates. It is a bigger problem for people from the financial weak section, who have faced income loss during the Covid-19 pandemic.

Given the situation, higher cooking gas cylinder prices could lead to a sharp drop in demand and data shows that LPG sales in some cities have dipped. This is because poorer families are unable to afford cooking gas cylinders in the absence of subsidies.