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LPG turns dearer, household cooking gas refills cost ₹912

Price of 19 kg commercial cylinders reduced by Rs. 5

Cooking gas refills or the cylinders with 14.2 kg liquefied petroleum gas (LPG) that households use now cost  ₹912 in the city.

The price moved past the  ₹900 mark after national oil marketing companies Indian Oil, Bharat Petroleum and Hindustan Petroleum increased the cost of non-subsidised cylinders by  ₹25 each effective August 17 across the country.

Coming at a time when many low to middle income households are struggling to emerge from economic impact of the pandemic, the hike is bound to add to their worries, particularly for families whose LPG consumption is high, ahead of winter months.

Sources among cooking gas distributors, however, said consumers seem to have got used to increase in LPG prices as there was hardly any opposition when deliveries at the new price (₹912) were made on Tuesday. This is the non-subsidised price that households who either had opted out of subsidy or not eligible for the same, on account of income levels, pay for the refills. For those who continue to draw or are eligible, the subsidy is negligible.

From  ₹746.50 on January 1, the non-subsidised domestic refill price was increased six times, including thrice in February. The only instance of a reduction this year was on April 1, when the refill price dropped  ₹10 to  ₹861.50 each. Prior to Tuesday, the price was increased by ₹25.50 on July 1 taking the refill cost to  ₹887.

The demand for domestic LPG has been growing, sources said, attributing it work from home and the restrictions on movement during the lockdown. LPG prices are determined by the international price of propane and butane as also the foreign exchange rates.

While domestic LPG by volume is a big market, commercial LPG or the cylinders meant for use in commercial establishments such as tea stalls and eateries is where intense competition is witnessed among the distributors. On Tuesday, the price of 19 kg commercial cylinders were reduced by  ₹ 5 each to  ₹1,798 by the oil companies.

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