Home Articles LPG Price Hike November 1: Diwali shock for common man, commercial cylinder...
KEY STORY
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Ahead of Diwali, inflation bomb exploded yet again. After petrol and diesel, LPG prices were increased by Rs 265 per cylinder. However, the saving grace is that the price hike was made in commercial cylinders and not on cylinders for domestic use. There was no change in domestic LPG prices.
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After this hike, commercial cylinder price in Delhi crossed Rs 2,000 mark. Earlier, it was being sold at Rs 1,733. 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.
Domestic cylinder price
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LPG cylinders meant for domestic use witnessed no change in its value. In the national capital Delhi, a 14.2 kg without-subsidy LPG cylinder is sold at Rs 899.50. Worth mentioning here is that domestic LPG prices were increased on October 6. In Kolkata, a 14.2 kg domestic LPG cylinder costs Rs 926 while in Chennai it costs Rs 915.50.
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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.
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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.
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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.
CONCLUSION
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As per existing rules, households are eligible to get 12 cylinders of 14.2kg each at subsidised rates. Any quantity over this has to be bought at market price or non-subsidised rates.
