OMCs hike LPG cylinder prices

The oil marketing companines on Friday hiked 19 kg LPG cylinder prices by Rs 21 on account of hike in Saudi contract price (CP), the benchmark used for pricing of LPG in the country. Now, 19 kg LPG cylinder will cost Rs 1,796 in New Delhi. This can force restaurants and hotels to increase food prices to make up for rise in cooking cost. The government has not hiked the price of the 14.2 kg domestic cylinder that citizens use  in their households.

With the GoI’s latest decision, 19 kg cylinders will now cost Rs 1,749 in Mumbai. While, in Chennai it wil be priced at Rs 1,968. In Kolkata it will cost Rs 1,749.

The  prices have been raised due to hike in international benchmark, Saudi contract price, on account of firming up of international crude oil prices in past few weeks amidst supply concerns.  Brent crude oil price had risen continuously  in November 2023 lask week and had reached $83.75/ barrel towards  the end of the month.

While on the other hand, the price of 14.2 kg cooking cylinder prices has not been hiked and remains at Rs 903.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise cooking gas prices on the 1st of every month, based on the average international price in the previous month.

Petrol and diesel prices on the other hand continued to remain on freeze for a record 21st month in a row. Petrol costs Rs 96.72 per litre in the national capital, and diesel comes for Rs 89.62 per litre.
State-owned fuel retailers are supposed to revise petrol and diesel prices daily, based on a 15-day rolling average of benchmark international fuel prices, but they haven’t done that since April 6, 2022.
Prices were last changed on May 22 when the government cut excise duty to give relief to consumers from a spike in retail rates that followed a surge in international oil prices.