Ahead of Diwali, the inflation bomb exploded yet again. After petrol and diesel, LPG prices were increased. However, the saving grace is that the price hike was made in commercial cylinders and not on cylinders for domestic use. There was no change in domestic LPG prices.
The prices of Liquefied Petroleum Gas (LPG) cooking gas were hiked by Rs 266 from Monday onwards.
Commercial cylinders of the 19 kg in Delhi will cost Rs 2000.50 from Monday onwards which was costing Rs 1734 earlier. However, in relief to household consumers, no increase were announced in the price of domestic LPG cylinders, reported Mint.
Here are the price of commercial cylinders in several cities:
Delhi: LPG cylinder price in Delhi has gone up to Rs 2000.5, which was earlier Rs 1735.5
Mumbai: Consumers have to spend R 1,950 for a commercial gas cylinder of 19 kg.
Kolkatta: Now a 19 kg gas cylinder in the city has become Rs 2,073.50
Chennai: A 19 kg cylinder in the city will be available for Rs 2,133.
According to a report, the government policy provides for the supply of 12 cylinders of 14.2-kg each per household at subsidized or below-market rates. Any quantity over this had to be bought at market price or non-subsidised rates.
Earlier, the prices of LPG cooking gas cylinders across all categories including subsidised gas on were hiked by Rs 15 per cylinder last month. This was the fourth straight increase in prices in less than two months. Subsidized and non-subsidised LPG rates were hiked by Rs 25 per cylinder on October 1.
The increase in subsidised LPG price now has taken the cumulative rate hike since January 1 to Rs 205 per cylinder.
The two main factors that determine the prices of LPG cylinders in India are global crude oil prices and the dollar-rupee exchange rate as crude prices are denominated in US dollars.
Brent crude prices are now hovering near $84 per barrel while the dollar-rupee exchange rate on Friday closed at 74.88 mark, putting pressure on LPG prices.