Cooking gas prices hiked for second time in 12 days

New Delhi: On Thursday, state-owned oil companies raised the price of domestic liquefied petroleum gas (LPG), making cooking gas expensive for some 305 million customers. 14.50 kg domestic cylinder of 3.50 – the second price increase in less than two weeks.

With the recent rise in the price of cooking gas, the price of domestic 14.2 kg LPG cylinder in Delhi 1,003 per refill, 1,029 in Calcutta, 1,002.50 and up in Mumbai 1,018.50 in Chennai.

Domestic LPG suppliers had raised the price of cooking gas last time Due to the increase in international fuel costs due to the Ukraine war on May 7, the price per cylinder will be Rs.

Commercial LPG is also expensive 8 kg for 19 kg cylinder, with new price 2,354 in Delhi on Thursday – the seventh rise in this calendar year, according to the Indian Oil Corporation (IOC) price notification.

India’s cooking gas market is dominated by three government oil marketing companies – IOC, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). Companies have previously raised rates 50 per cylinder on March 22 this year 949.50 in Delhi – first price rise in a year. Prior to that, domestic LPG prices were revised 15 on October 6, 2021, which results in a price In Delhi, a 14.2 kg cylinder costs Rs 899.50.

The cost of cooking gas has skyrocketed over the past two years, but the government has reduced fuel subsidy significantly. This has gradually halted the direct benefit transfer (DBT) of cooking gas subsidies in most places, including Delhi, and reduced the financial burden on coffers by more than 86%. An estimated Rs 29,628 crore is expected in 2019-20 According to official figures, the current fiscal year is Rs 4,000 crore.

DBT mode domestic LPG cooking gas subsidy has been discontinued in many markets since May 2020 581.50 per 14.2 kg cylinder. However, the government will continue to subsidize additional transportation costs for customers living in remote and remote areas, which are generally lower. 50 per cylinder

According to the Petroleum Ministry’s Data-Keeper Petroleum Planning and Analysis Cell (PPAC), the total cash transfer to customers under the DBT for LPG Consumer (DBTL) scheme in Delhi and some other markets is zero. This value [LPG subsidy through DBT] Was 231 and 162.43 per cylinder in March 2020 and April 2020.

The Ministry of Petroleum and Finance did not respond to repeated email queries on this issue seeking specific reasons to drastically reduce the DBT of the cooking gas subsidy by 2020, despite the rise in domestic LPG prices. On May 16, HT issued a similar report.

The shrinkage of the LPG subsidy through DBT mode is confirmed by the Central Budget. The real direct benefit transfer of the LPG subsidy, that is 29,628 crore in 2019-20, down from Rs 23,667 crore [actuals] In 2020-21. After that, it was sharply trimmed 3,400 crore from the (RE) Budget Estimates (BE) in the revised estimates for 2021-22 12,480 crore. The BE of 2022-23 is placed 4,000 crore. There is no official data available on the specific details of the LPG subsidy through DBT mode – the number of beneficiaries, the location of such beneficiaries and the amount of unit subsidy paid to them.

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