Price Of Non-subsidised LPG Cylinders Raised By ₹86, Steepest Hike In History

Subsidised cooking gas cylinder rate was hiked by 13 paisa.

02/03/2017 9:11 AM IST | Updated 02/03/2017 9:11 AM IST
Rupak De Chowdhuri/Reuters

NEW DELHI -- The price of non-subsidised cooking gas (LPG) was hiked by a steep ₹86 per cylinder today, reflecting international trends.

Non-subsidised LPG, bought by those who have either given up their subsidies or exhausted the quota of 12 bottles of 14.2 kg in a year at below market price, will now cost ₹737.50.

It was priced at ₹651.50 per 14.2 kg cylinder till Tuesday, according to state-owned oil companies.

The hike, steepest in the history, comes on back of ₹66.5 per cylinder increase effected from February 1.

Rates have been on the upswing since October, 2016. A non-subsidised LPG cylinder was priced at ₹466.50 in Delhi in September and has risen by ₹271 per bottle or 58% in six instalments.

Oil firms also raised price of subsidised cooking gas by a marginal 13 paisa to ₹434.93 per 14.2 kg cylinder. This follows a 9 paise increase effected from February 1.

Prior to these two marginal price hikes, subsidised cooking gas rates had gone up eight times of nearly ₹2 per cylinder each.

Aviation turbine fuel (ATF) price was also raised by a marginal ₹214 per kilolitre to ₹54,293.38 per kl. The increase comes on back of a 3% hike on February 1.

Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.

An official statement said the increase in non-subsidised LPG rates were in "line with the rise in global LPG product prices."

"However, there will be no impact on the LPG consumers receiving subsidised refills," it said.

Giving an illustration, it said the consumer will pay ₹737 for a new refill in Delhi and will receive subsidy amount of ₹303 in his/her account and the net price for the consumer will be ₹434, which remains unchanged.

"Thus, there will be no net impact of the increase in price of non-subsidised cylinder on the LPG consumers receiving subsidised refills," it added.

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