Hardeep Singh Puri, the Union Minister of Petroleum and Natural Gas, declared on April 7 that LPG gas cylinder prices would rise by Rs 50 per cylinder beginning tomorrow morning. The 14.2-kg domestic cylinder, which was previously priced at Rs 803, will now cost Rs 853, the minister declared during a press conference.
Ujjwala beneficiaries will now pay Rs 550 for each 14.2 kg LPG cylinder, while non-Ujjwala beneficiaries will pay Rs 853.
The minister also stated that the price increase for LPG will be reviewed every 15 days and modified in accordance with global prices. "The international price of LPG has been increasing. It increased from $415 to $712 per MT, but we never passed it on to consumers. OMCs have already absorbed the rate of increase.The Rs 50 increase on LPG cylinders addresses the current under-recovery, not the backlog. For the backlog, we will submit a request to the Finance Ministry. The three state-run OMCs incurred an LPG under-recovery of Rs 41,338 crore in the previous fiscal year," the minister said.
Speaking about the increase in excise duty on petrol and diesel, Hardeep Singh Puri stated that it will not be passed on to customers. "You can legitimately expect oil marketing companies to moderate petrol and diesel prices in line with global prices. In a deregulated sector, you can expect market retail prices to be adjusted accordingly," he said.
Over 60% of India's domestic LPG consumption comes from imports. The price of LPG in the country is linked to the price on the international market. The government continues to adjust the effective price to consumers for domestic LPG.
Additionally, the government increased the excise tax on diesel and gasoline by Rs 2 each. The excise tax on gasoline and diesel has been raised to Rs 13 per litre and Rs 10 per litre, respectively, per the government announcement.
