Indian Oil Corporation Limited, a public sector oil and gas company, has announced an increase in the prices of commercial Liquified Petroleum Gas (LPG). The price hike, effective from Sunday, October 1, amounts to Rs 209 per cylinder.
It’s important to note that this price increase only applies to commercial LPG, while the rates for domestic LPG remain unchanged. The government had previously reduced the price of domestic LPG by Rs 200 on August 29, which led to discussions about the significant overall increase in domestic LPG prices since 2014.
The revised retail price for 19 kg commercial LPG cylinders in Delhi now stands at Rs 1731.50, as reports. In Chennai, the new price is Rs 1,898 per cylinder, up from Rs 1,685 in September.
LPG is a versatile energy source used for cooking, as motor fuel, heating, cooling, and in various industries. This price hike is likely to impact inflation rates as the increased costs are passed on to consumers, affecting the budgets of citizens, particularly for essential items.
Critics have pointed out that despite low international crude oil prices during the Modi government’s tenure, fuel prices for consumers remained high, with excise duties and cess contributing significantly to government revenues. The recent price hike has been attributed to rising international prices, further burdening citizens.
In addition to the commercial LPG price increase, the government has also raised domestic natural gas prices from $8.60 to $9.20 per metric million British thermal unit (mmBtu), marking the second consecutive monthly increase. The new formula for domestic natural gas pricing now takes into account the price of the Indian crude basket every month.
Furthermore, jet fuel prices, or Aviation Turbine Fuel (ATF), have been hiked by 5%, reaching their highest point this year. This increase may lead to higher airfares during the festive season, affecting travelers.
The price hikes come at a time when inflation rates have consistently exceeded the Reserve Bank of India’s acceptable range of 2-6%, posing additional challenges for the majority of the population. The rising cost of essential commodities and fuel prices has raised concerns among citizens about their ability to make ends meet, particularly for those in sectors like transportation, where alternative fuels like LPG were considered more economical.
