The price of non-subsidised cooking gas (LPG) steeply rose to Rs 86 per cylinder on Wednesday, well reflecting international trends. Non-subsidised LPG, bought by those who have exhausted the quota of 12 bottles of 14.2-kg in a year at below market price, will now cost Rs 737.50. It was priced at Rs 651.50 per 14.2-kg cylinder till Tuesday. The hike is by far one of the steepest in the history.
“With effect from March 1, 2017, non-subsidised price of LPG cylinder has increased by Rs 86. This is in line with the rise in global LPG product prices,” a Petroleum Ministry statement here said.
This hike comes soon after the 66.5 per cylinder increase effected from February 1. Rates have been hiking since October 2016. A non-subsidised LPG cylinder was priced at Rs 466.50 in Delhi in September and has risen by Rs 271 per bottle or 58 per cent in six installments. Oil firms also raised Oil companies also raised the price of subsidized cooking gas by a marginal 13 paisa to Rs 434.93 per 14.2 kg cylinder in Delhi.
Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month. Aviation turbine fuel (ATF) price was also raised by a marginal Rs 214 per kilolitre to Rs 54,293.38 per kl. The increase comes on back of a 3 per cent hike on February 1.
An official statement said the increase in non-subsidised LPG rates were in “line with the rise in global LPG product prices.” “However, there will be no impact on the LPG consumers receiving subsidized refills,” it said.
Further adding, it said the consumer will pay Rs 737 for a new refill in Delhi and will receive subsidy amount of Rs 303 in his/her account and the net price for the consumer will be Rs 434, which remains unchanged. “Thus, there will be no net impact of the increase in the price of a non-subsidised cylinder on the LPG consumers receiving subsidized refills,” it added.