Cooking gas prices are up £ 100 this month – check out what happens to subsidies

  • State oil companies increased cooking gas prices by £ 100 in December 2020.
  • This is the largest monthly increase in cooking gas prices to date.
  • As a result of the recent price hike, a 14.2kg LPG cylinder in Delhi now costs £ 694.
  • Among the major cities and capitals, cooking gas prices are the highest in Patna at £ 792.
  • There is no official information on what happens to the benefits of the cooking gas subsidy.
  • Find the latest Business Insider news and updates.

State oil companies increased cooking gas prices by £ 100 in December 2020. Cooking gas prices have increased by £ 50 twice in the past 15 days. This is the largest price hike in a single month to date.

As a result of the recent price hike, Delhi consumers are now paying £ 694 per cylinder (14.2 kg). In Hyderabad, a 14.2 kg cylinder now costs £ 746.5.

New LPG cylinder prices in major cities of India

city December 2020 November 2020
New Delhi £ 694 £ 594
Mumbai £ 694 £ 594
Kolkata £ 720.50 £ 620.50
Chennai £ 710 £ 610
Bengaluru £ 697 £ 597
Hyderabad £ 746.50 each £ 646.50 each
Gurgaon £ 703 £ 603
Patna £ 792 £ 692

Note: prices as of December 17, 2020

For the first week of December or late November, cooking gas prices in Delhi and Hyderabad were £ 594 and £ 646.5, respectively. Cooking gas prices remain the highest in Patna at £ 792.

It should be noted that these price increases apply to both subsidized and unsubsidized cylinders. If you are eligible for the grant, you must pay the increased rates when booking a cylinder now. We checked this on the Indian Oil website as well.

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What happens to my LPG gas subsidy?

Consumers who are eligible and who have opted for a gas subsidy could see a proportional increase in their subsidies. However, exact details and the relevant official confirmation are not yet available.

Under the subsidy system, households in India can buy a maximum of 12 LPG bottles per year. These consumers must first purchase full price cylinders, and the subsidy amount is then deposited by the government in the consumer’s bank account.

In September of this year, the government eliminated cooking gas subsidies as a fall in oil prices and an increase in cooking gas prices resulted in market parity and subsidized prices.

Given that market prices are rising again, it remains to be seen whether the government will also increase subsidies.

Crude oil prices have risen sharply since October

Crude oil prices have risen sharply since October, forcing oil companies to raise gasoline and diesel prices, according to an ET report.

In the past 1 month, gasoline prices have increased 14 times and increased by 2.8%. The last time gasoline prices were this high was in 2018, when prices hit £ 91.39 per liter in Mumbai and £ 84.06 in Delhi. Current gasoline prices in Mumbai and Delhi are £ 90.34 and £ 83.71, respectively.

SEE ALSO:

The Indian government will no longer pay direct power transmission for cooking gas – subsidies will be cut if oil prices fall

BPCL cooking gas customers will continue to receive subsidies after privatization, but the government will not reimburse the costs

Gasoline is less than a rupee away from being more expensive than ever for Indian consumers

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