LPG prices hiked up to Rs 144 per cylinder

According to Indian Oil, "In Delhi price of Indane gas rose to Rs 858.50 (increased by Rs 144.50), in Kolkata Rs 896.00 (increased by Rs 149), in Mumbai Rs 829.50 (increased by Rs 145) and in Chennai Rs 881.00 (increased by Rs 147)." This is the steepest hike in rates since January 2014 when prices had gone up by Rs 220 per cylinder to Rs 1,241.

New Delhi:State-run Indian Oil on Wednesday hiked the price of non-subsidised liquefied petroleum gas (LPG) cylinders across metro cities by over Rs 144. The new rates would be applicable from Wednesday.

The LPG cylinder prices had not increased after January 1, 2020.

This is the steepest hike in rates since January 2014 when prices had gone up by Rs 220 per cylinder to Rs 1,241.

According to Indian Oil, "In Delhi price of Indane gas rose to Rs 858.50 (increased by Rs 144.50), in Kolkata Rs 896.00 (increased by Rs 149), in Mumbai Rs 829.50 (increased by Rs 145) and in Chennai Rs 881.00 (increased by Rs 147)."

City	Hike in price	Price of Indane gas
Delhi	Rs 144.50	Rs 858.50
Kolkata	Rs 149	Rs 896.00
Mumbai	Rs 145	Rs 829.50
Chennai	Rs 147	Rs 881.00

But to insulate domestic users, the government almost doubled the subsidy it provides on the fuel to keep per cylinder outgo almost unchanged.

Domestic LPG users, who are entitled to buy 12 bottles of 14.2-kg each at subsidised rates in a year, will get more subsidy.

The government subsidy payout to domestic users has been increased from Rs 153.86 per cylinder to Rs 291.48, industry officials said.

For Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, the subsidy has increased from Rs 174.86 to Rs 312.48 per cylinder.

After accounting for the subsidy that is paid directly into the bank accounts of LPG users, a 14.2-kg cylinder would cost Rs 567.02 for domestic users and Rs 546.02 for PMUY users.

The government gave out 8 crore free LPG connections to poor women under PMUY to increase coverage of environment-friendly fuel in kitchens.

Normally, LPG rates are revised on 1st of every month but this time it took almost two weeks for the revision to take place - a phenomenon which industry officials said was due to approvals needed for such a big jump in subsidy outgo.

Others said the decision to defer the increase could have been because of assembly elections in Delhi. Delhi voted on February 8.

(Inputs from ANI and PTI)