Domestic LPG cylinder rates hiked by Rs 25 for 3rd straight month

Mangalore Today News Network

New Delhi, Sep 01, 2021: The price of domestic liquefied petroleum gas (LPG) cylinders has been hiked by Rs 25. After the hike, a 14.2-kilogram cooking gas cylinder will cost Rs 884.50 in Delhi. LPG cylinder rates have increased by an equal amount in other parts of the country.

 

State-run oil companies have increased cooking cylinder prices by Rs 25 for the third straight month. LPG cylinder price was earlier hiked by Rs 25 in July and August, respectively. In just 3 months, domestic cooking gas cylinder rates have gone up by Rs 75.

This is a big blow to citizens, especially those from the financially weak sections. Higher LPG gas cylinder prices will hurt millions of poor households as the government had gradually lowered support after the elimination of LPG subsidy last year in May.

Higher cooking gas cylinder prices could lead to a sharp drop in demand and data from states already indicate that LPG sales have been dipping.

Without subsidy support, many poor households are currently unable to afford cooking gas cylinders. Many people are likely to cut down on usage as well to save money.

Others may move to cheaper options such as electric cooking or commercialised gas pipelines, but such options are limited to a small amount of the population. People in rural areas will be severely hit due to the continuous price rise.

The price rise is also likely to hurt the government’s effort to ease access to LPG connections for poorer households under the Pradhan Mantri Ujjwala Yojana (PMUY). The second leg of the PMUY was launched last month by Prime Minister Narendra Modi.

In addition to high cooking gas cylinders prices, citizens are also bearing the burden of high fuel prices. While state-run oil companies have recently started cutting petrol and diesel prices, the amount of reduction remains negligible compared to the back-to-back price hikes earlier this year.

Courtesy:India Today