LPG price hiked by Rs 50, petrol and diesel price also rises

The price of Liquefied Petroleum Gas (LPG) gas cylinders has been hiked again, and the new rates would be applicable from today. The price of a 14.2 kg LPG cylinder for domestic use will become costlier by Rs 50.

According to the country`s largest oil company Indian Oil Corporation (IOC), a gas cylinder without subsidy in Delhi will now cost Rs 769.

This is the second price hike in the month of February. The oil marketing companies had increased the price of non-subsidised LPG cylinders by Rs 25 in metro cities on February 4.

The price of LPG gas cylinder is determined by the state-run oil companies and is revised on a monthly basis.

Households in India are allowed a maximum of 12 LPG cylinder purchases per year at subsidized rates. Cylinders have to be bought at full price at the time of purchase, and the subsidy is then credited to the customer`s bank account by the government. 

There has been a sharp jump in global energy prices, with oil prices on Monday spiking over concerns about growing tensions in West Asia. Global crude oil prices have been rallying after the Organization of the Petroleum Exporting Countries (Opec)-plus meeting on 3 February decided to continue with supply curbs.

Pump retail prices of petrol hit a record high of Rs88.99 per litre in Delhi, with petrol and diesel prices raised again by 26 paise per litre and 29 paise per litre respectively on Monday in the national capital region.

Diesel prices retailed at ?79.35 a litre in the national capital. In Mumbai also, petrol and diesel are selling at record highs of ?95.46 a litre and ?86.34 a litre respectively.

The cost of the Indian basket of crude, which comprises Oman, Dubai, and Brent crude, was at $60.74 a barrel on 11 February. The benchmark Brent crude was trading at $63.50 per barrel on Monday morning and the West Texas Intermediate was at $60.74 a barrel at the time of writing this story.

The non-subsidized domestic cooking gas price has been increased against the backdrop of the Union finance ministry slashing the allocation for petroleum subsidy by two-thirds to ?12,995 crores for FY22.