Domestic LPG price hiked by Rs 50 per 14.2-kg cylinder, first hike since July 2022

With this price increase, in effect from March 1, a 14.2-kg domestic LPG cylinder has been priced at Rs 1,103 in Delhi, Rs 1,102.50 in Mumbai, Rs 1,129 in Kolkata, and Rs 1,118.50 in Chennai

Workers deliver Indane cooking gas on a tricycle during a lockdown imposed due to the coronavirus in New Delhi, India, on Wednesday, April 15, 2020. (Photographer: Prashanth Vishwanathan/Bloomberg)

Listen to this article

00:00

1x 1.5x 1.8x

In the first hike in domestic liquefied petroleum gas (LPG) cylinder price since July 2022, oil marketing companies (OMCs) have raised it by Rs 50 per 14.2-kg cylinder, as per information provided by Indian Oil Corporation (IOC).

With this price increase, in effect from March 1, a 14.2-kg domestic LPG cylinder has been priced at Rs 1,103 in Delhi, Rs 1,102.50 in Mumbai, Rs 1,129 in Kolkata, and Rs 1,118.50 in Chennai.

Commercial LPG prices have also been hiked by Rs 350.50 per 19-kg cylinder in Delhi to Rs 2,119.50, with corresponding changes in other parts of the country. Unlike domestic LPG, which is used by households, commercial LPG prices were revised at regular intervals.

Story continues below this ad

The last price revision in the case of domestic LPG was on July 6, 2022. Global crude oil and fuel prices had skyrocketed in the aftermath of Russia’s invasion of Ukraine. This had forced the public sector OMCs—IOC, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation—to halt regular revisions in prices of fuels like petrol, diesel, and LPG used by households in a bid to shield consumers from extreme fuel price volatility, which has now subsided to a large extent.

OMCs suffered heavy losses on the sale of these fuels as they were selling below global prices. In October, the Centre gave a one-time special grant of Rs 22,000 crore to the three companies to compensate them for their losses on domestic LPG sales.

OMCs have not revised prices of petrol and diesel since early April of last year. According to sources, with global fuel prices having softened considerably from the highs of 2022, the OMCs are now recouping the losses they suffered on the two fuels.