AgenciesAfter hiking cooking gas prices by nearly 40% in about three months to record levels, , , and Bharat Petroleum have said in a joint statement that the gas was still cheaper than firewood and other traditional fuels.
“Even at the current rates, liquefied petroleum gas (LPG) is cheaper than firewood/ other traditional fuels in many states, largely on account of its overall heating efficiency,” three state-run oil marketing companies said. “While the upfront per kg cost of firewood is cheaper, LPG is a more economical fuel in the long run when costs such as total volume of fuel consumed and handling costs are factored in.”
Oil companies didn’t offer details on the source of their price data or assumptions for such a conclusion. The statement looks like an attempt at addressing the rising concerns that high prices may force poor consumers to switch back to traditional polluting fuels, offsetting the gains made by near-universal access to LPG achieved in recent years.
Cooking gas prices are up by Rs 225 per cylinder since November, an unprecedented rise. In Delhi, a refill now costs Rs 819. Cooking gas prices have doubled since March 2014, Oil Minister Dharmendra Pradhan told Parliament on Monday.
A sharp rally in international oil prices and near-absent subsidy have driven up cooking gas prices, making it harder for poor families to afford clean fuel.
Last month, International Energy Agency highlighted India’s limited gas consumption. “While the government has broadened availability to LPG through different schemes to reach most Indian dwellings, nearly half of all households in 2019 continued to rely on traditional uses of biomass for cooking, mostly in rural areas,” it said. “Access to clean cooking goes beyond technical availability: it also extends to issues of adequacy, reliability, convenience, safety and affordability.”
By providing subsidised connections to poor families in recent years, the government has pushed up access but refill rates among poor consumers have been dismal.
In their statement, three state oil companies also referred to the health benefits of using LPG. “Research has shown that those exposed to air pollution are more susceptible to COVID-19, therefore doing everything to maintain LPG use among the poor is actually a direct health measure.”
“Even at the current rates, liquefied petroleum gas (LPG) is cheaper than firewood/ other traditional fuels in many states, largely on account of its overall heating efficiency,” three state-run oil marketing companies said. “While the upfront per kg cost of firewood is cheaper, LPG is a more economical fuel in the long run when costs such as total volume of fuel consumed and handling costs are factored in.”
Oil companies didn’t offer details on the source of their price data or assumptions for such a conclusion. The statement looks like an attempt at addressing the rising concerns that high prices may force poor consumers to switch back to traditional polluting fuels, offsetting the gains made by near-universal access to LPG achieved in recent years.
Cooking gas prices are up by Rs 225 per cylinder since November, an unprecedented rise. In Delhi, a refill now costs Rs 819. Cooking gas prices have doubled since March 2014, Oil Minister Dharmendra Pradhan told Parliament on Monday.
A sharp rally in international oil prices and near-absent subsidy have driven up cooking gas prices, making it harder for poor families to afford clean fuel.
Last month, International Energy Agency highlighted India’s limited gas consumption. “While the government has broadened availability to LPG through different schemes to reach most Indian dwellings, nearly half of all households in 2019 continued to rely on traditional uses of biomass for cooking, mostly in rural areas,” it said. “Access to clean cooking goes beyond technical availability: it also extends to issues of adequacy, reliability, convenience, safety and affordability.”
By providing subsidised connections to poor families in recent years, the government has pushed up access but refill rates among poor consumers have been dismal.
In their statement, three state oil companies also referred to the health benefits of using LPG. “Research has shown that those exposed to air pollution are more susceptible to COVID-19, therefore doing everything to maintain LPG use among the poor is actually a direct health measure.”
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7 Comments on this Story
 | Subramanian Narayanan3 days ago To be Frank gas subsidy should be abolished. For a family of 2 a cylinder will last for more than 3 months depending on the use. Income criteria is really ridiculous in deciding the eligibility for subsidy. |
 | Hemant Pisat4 days ago Utterly ridiculous. |
| Kishore Shivani4 days ago OUR THESE SO CALLED POOR WANT EVERYTHING FREE THIS IS A FAKE NARRATIVE TO BLACKMAIL GOVT INTO CONTINUING FREE GAS CYLINDERS ELECTRIC COOKING IS CHEAPER BECAUSE EITHER ELECTRICITY IS FREE OR ROBBED HENCE ALL DISCOMS ARE HAVING MASSIVE LOSSES WHICH ARE ULTIMATELY PAID FOR BY THE GOVT FROM TAXPAYERS MONEY. |