Unsubsidized liquefied petroleum gas (LPG) prices have increased significantly in major cities in India. The price of an unsubsidized 14.2 kg LPG bottle used for household purposes has increased by 50 rupees in metropolitan areas of Delhi, Mumbai, Kolkata and Chennai. In Delhi and Mumbai, the 14.2 kg cylinder now costs 644 Rs, while in Calcutta it is priced at 670 Rs.
The rates of commercial cylinders have also increased. The commercial 5kg LPG bottle is now 18 rupees more expensive in the cities. The price of 19kg LPG has also increased by Rs 36.50 to reach Rs 1296 in Delhi. In Mumbai it costs Rs 1,244 and in Calcutta Rs 1,351. According to the Indian Oil Corporation, it is the most expensive subway in Chennai at Rs 1,410.50.
The rate of domestic and commercial LPG is set by the state oil companies. IOCL, the country’s largest fuel retailer, supplies LPG under the Indane brand.
At the beginning of this month, when monthly LPG rates were reviewed, prices were kept unchanged from November 1st. It was the fifth month in a row that prices remained constant. However, the revision of the prices in the middle of the month indicates a deviation from normal practice.
Previously, the price of a 14.2 kg LPG with subsidy in Delhi was 594 rupees. In Kolkata it was Rs 620.50, in Mumbai Rs 594 and in Chennai Rs 610.
Indian households can take advantage of buying LPG bottles at subsidized prices for a maximum of 12 bottles per year. Customers must pay full price at the time of purchase. The grant will later be deposited into the customers’ bank accounts by the government.
Since May, several customers have raised concerns about non-payment of subsidies. This is largely due to the collapse in the international oil price, and the rise in the domestic replenishment rate narrowed the gap between market and subsidized rates.