LPG cylinder now costs more than Rs 1,000

The price of a 14.2 kg domestic liquified petroleum gas (LPG) cylinder has been increased by Rs 3.5 with effect from Thursday. With the new hike, the domestic cooking gas cylinder will now cost more than Rs 1,000.

A non-subsidised domestic LPG cylinder will cost Rs 1,003 in Delhi. The cooking gas cylinder will be priced at 1002.50 in Mumbai; 1,029 in Kolkata, and Rs 1,018.5 in Chennai from Thursday.

This is the second increase in the LPG rate in May and the third in less than two months. The price was hiked by Rs 50 per cylinder on March 22 and again by the same quantum on May 7. Since April 2021, prices have risen by Rs 193.5 per cylinder.

Non-subsidised cooking gas is the one that consumers buy after exhausting their quota of 12 cylinders at subsidised or below-market rates.

However, the government pays no subsidy on LPG in most cities and the price of the refill that consumers, including the poor women who got free connection under the much-talked Ujjwala scheme, is the same as that for non-subsidised or market price LPG. Non-subsidised LPG costs Rs 1,002.50 per 14.2-kg cylinder in Mumbai while it is priced at Rs 1,018.50 a bottle in Chennai and Rs 1,029 in Kolkata.

Rates differ from state to state depending on the incidence of local taxes such as VAT. Prices are higher in states with higher taxes. Alongside, oil firms also hiked the price of commercial LPG cylinders - the ones used by establishments like hotels and restaurants - by Rs 8 per cylinder to Rs 2,354 per 19-kg bottle. On May 1, the price of a commercial LPG cylinder was increased by Rs 102.50 to Rs 2,355.50 but on May 7 it was reduced to Rs 2,346.