LPG cylinder cost up by Rs 50, second time in two months

The price of LPG is linked with international prices of LPG, which have been rising as a result of supply concerns due to the Russia-Ukraine conflict.

The Price of LPG has been rising consistently since November 2020 with the price of a 14.2kg cylinder in Delhi rising by Rs 405 or nearly 70 per cent during the period.

A steady increase in crude oil prices due to a recovery in demand post-Covid related restrictions, slow restoration of crude oil production by oil-exporting countries and the Russia-Ukraine conflict have contributed to the rising LPG prices.

The rise in prices has come at a time when subsidies on cooking gas have been removed for most consumers. In May 2020, the government halted subsidies on LPG cylinders through its direct benefit transfer scheme to all consumers barring customers in remote areas who face high inland freight costs from ports to bottling plants.

Over 70 per cent of Indian households used LPG as their primary cooking fuel and 85 per cent had LPG connections in march 2020, according to study by the Council on Energy, Environment and Water (CEEW).

Households that continue to use traditional fuels such as firewood, charcoal and agriculture residues along with LPG have cited the high cost of LPG as a key reason for continuing the use of these fuels.