Domestic LPG cylinder prices in India have been increased by ₹29 per unit from June 7, taking the price of a 14.2 kg cooking gas cylinder to ₹942 in Delhi and ₹968 in Kolkata. This is the second increase in prices in less than three months, as oil marketing companies are incurring huge losses on the sale of every cylinder.
Earlier, on March 7, the cylinder price was increased by ₹60. The total price of domestic cooking gas has increased by ₹89 since tensions with Iran began. Despite this continuous increase, the government says that all categories of customers are getting substantial subsidy compared to the actual cost of supply.
**Indirect subsidy for general public**
During a press briefing with different ministries last Monday, Praveen Mal Khanuja, Additional Secretary, Ministry of Petroleum and Natural Gas, said the price hike of ₹29 should be seen in the context of the larger indirect subsidy that customers have been continuously receiving.
“Whether I am a beneficiary of the Ujjwala scheme or not, I am getting a cylinder worth ₹1,600 for ₹942. This is an indirect subsidy to the customer. Additionally, Ujjwala beneficiaries get an additional ₹300; so, overall they are getting a benefit of ₹1,000. Non-Ujjwala beneficiaries are also getting a benefit of ₹700 per cylinder,” Khanuja said.
Based on Saudi contract prices, the actual cost of a 14.2 kg cylinder is currently more than ₹1,600, meaning the gap between the market rate and the price paid by the customer is wide.