The prices of Liquefied Petroleum Gas (LPG) cooking gas were hiked by Rs ₹266 from today onwards. Commercial cylinders of the 19 kg in Delhi will cost ₹2000.50 from today onwards which was costing ₹1734 earlier. However, in relief to household consumers, no increase were announced in the price of domestic LPG cylinders.
In Mumbai, a 19 kg commercial cylinder, which was sold at Rs 1,683, now costs Rs 1,950 after today’s hike. In Kolkata, a 19-kg commercial cylinder now costs Rs 2,073.50 and in Chennai price of this product has increased to Rs 2,133.
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-subsidized rates.
Keeping in view the rising prices of crude oil, it is expected that domestic LPG cylinder prices may cross the Rs 1,000 mark soon. In this year so far, domestic LPG cylinder prices have increased from Rs 694 in January to Rs 899.50 now after eight straight increases.
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.