Indian families have been facing increases in the cost of cooking gas since Saturday, when the government approved a further increase in the rates for LPG cylinders. According to officials, this is because of the substantial increase in global energy prices due to the worsening crisis in the Middle East.
The price of LPG cylinders used by households has risen by ₹60, and the price of commercial cylinders now costs ₹114.5 more. The new price increases came into effect on March 7 and are the second price increase in less than one year.
Some officials in the industry told PTI that global energy prices started to escalate following the recent escalation of military tensions, particularly between the US, Israel and Iran within the region, which have caused global fuel markets to be disrupted and increased the cost of imported energy for many of India’s importing partners.
For many of the millions of families in India now facing higher inflation rates and the increasing cost to meet these prices, this price increase could put more strain on their monthly budgets.
New LPG Cylinder Prices in Major Cities
LPG cylinder prices for the non-subsidised cylinder have now increased to ₹913 in Delhi (14.2 kg) from ₹853 previously. Increases will differ slightly based on local taxes and VAT.
Some examples from major cities are:
Delhi ₹913
Mumbai ₹912.50
Kolkata ₹939
Chennai ₹928.50
The last change was made in April of last year when domestic LPG prices were increased by ₹50. Basically, since India is heavily dependent on imported energy supplies, LPG cylinder prices are affected greatly by the fluctuation of crude oil or gas in the world market. When crude/gas prices increase, Indian consumers generally experience the price hikes soon after.
Relief Continues for Ujjwala Scheme Beneficiaries
The government’s support for the Pradhan Mantri Ujjwala Yojana has remained intact post-increase.
Around 10 crore people who received an LPG connection free from the PMUY scheme will continue to be provided with a ₹300 per cylinder subsidy if they have received at least 12 cylinders per year.
According to officials, the intention of this measure is to provide an option for households that are less fortunate so they can still purchase clean cooking fuel while global prices fluctuate.
Commercial LPG Also Becomes Costlier
The cost of doing business with LPG is also rising for many businesses.
In Delhi, the 19 kg commercial cylinder will soon be priced at ₹114.5 higher, raising the cost of that cylinder to ₹1,883. There was a smaller increase of ₹28 effective March 1 as well.
The hotels, restaurants, and catering service types of businesses will be some of the most affected by this cost increase. Many of these types of businesses are likely to face difficult decisions about whether to bear the new costs or to raise prices for their customers.
Petrol and Diesel Prices Remain Stable
Although gas prices are up globally, gasoline and diesel prices have not changed in any of the major cities of India as compared to last year. For example, in New Delhi, a litre of gasoline is priced at ₹94.77, and a litre of diesel is priced at ₹87.67, in line with the other major cities of India, e.g., Mumbai, Kolkata, and Chennai.
Energy analysts also said if there continues to be instability in countries of West Asia, gasoline and diesel prices could be impacted further in the coming months.
For now, the increase in gas prices is a reminder of how quickly global political tensions can affect people’s daily lives back home.
