LPG prices are in the spotlight as media reports suggest a fresh revision of LPG prices from May 1, though there is no official update on the new rates yet. Domestic LPG prices have been revised only once so far, while commercial cooking gas rates have been revised twice in recent months.
The LPG price hike may be announced on Friday, May 1, as oil companies usually announce price revisions at the beginning of the month and global oil markets also remain volatile.
As the government implements tighter controls on the use and distribution of cooking gas, reports also suggest new rules for LPG cylinders are being discussed, Mint reported earlier.
The increase in LPG prices to date
The center raised the price of a 14.2 kg domestic LPG cylinder ₹60 in March. However, no rate revisions have been made since then, keeping domestic LPG prices stable across the country.
Meanwhile, the price of a 19 kg commercial LPG cylinder was first increased ₹144 in March, followed by another hike of almost ₹200 on 1st April. The double hike has hit diners, restaurants and other businesses hard as they rely on cooking fuel for their day-to-day operations.
The price increase came after the outbreak of conflict in West Asia on February 28. Tensions between the US and Iran have led to a blockade in the Strait of Hormuz, a key shipping route for energy supplies, cutting off oil supplies.
In view of the situation, the Center has urged households and industries to switch to alternative sources of energy to ease pressure on domestic fuel supplies and reduce dependence on imports. The development comes after global oil prices jumped above $100 a barrel during the West Asian crisis.
The government has increased the rate of industrial diesel, premium petrol and jet fuel
Aviation turbine fuel (ATF), industrial diesel and premium gasoline have seen a noticeable increase in recent months. Petrol and diesel prices, meanwhile, remained relatively stable due to government interventions and excise duty cuts.
The price of premium gasoline was increased by ₹2.35 per liter from March 20, according to media reports. “The prices of Bharat Petroleum’s Speed, Hindustan Petroleum’s Power and Indian Oil’s XP95 have been increased by ₹2.09– ₹2.35/litre,” ANI reported.
India’s state-owned oil marketing companies (OMCs) have sharply hiked industrial diesel prices, with the increases exceeding ₹22 per litre, according to Mint. This was also announced in March.
Meanwhile, the price of ATF, or jet fuel, has more than doubled to a record high ₹2.07 lakh per kiloliter in March. However, the government has approved a 25% hike for domestic airlines in a bid to protect ticket prices.
