After 7-month freeze, LPG price rises by Rs 50 in Kolkata

KOLKATA: The price of a domestic LPG cylinder has skyrocketed in Kolkata, making it the most expensive among all metro cities in India. From March 1, a 14.2kg cylinder will be dearer by Rs 50, setting the kitchen budget of many households on fire. There was a freeze in prices for seven months. The price was revised immediately after the elections in three northeastern states.

A domestic LPG cylinder now costs Rs 1,129 in Kolkata, which is a Rs 268 hike from the cost one-and-a-half year ago. This steep increase has added to the woes of households already cutting corners due to the rising inflation. This is the second-highest domestic LPG price since 2014.
Anima Basu, a school teacher, said: "The steep hike is like rubbing salt to injuries. Prices of all commodities are rising steadily. We have cut corners but still, domestic expenses keep eating into my savings."
The price of LPG is determined by many factors, such as VAT, transportation costs and crude oil prices in the region. Retailers revise cylinder prices at the beginning of each month in line with the global crude oil prices. The prices of domestic cooking gas vary from one state to another due to local taxes.
Gautam Karmakar, an automobile engineer, said: "The successive rises of LPG price have made running a family a perpetual tight-rope walk, with expenses often exceeding the earning and running into new debt."
The hike in gas prices is irreversible as GST is applicable to LPG, unlike petrol and diesel prices. The Centre and the state can reduce some taxes to cool off the prices of petrol and diesel, but not so in the case of LPG, said an OMC official. In 2021, from September to February, there was a freeze in prices for five months. After the assembly elections in five states, the prices of petrol, diesel, LPG cylinders (both domestic and commercial) and jet fuel were hiked continuously.
"My entire household budget has now become the kitchen budget. We are forced to cut corners severely with my post-retirement income nosediving after cuts in interest rates," said Ashok Ganguly, a retired citizen.
Every household is entitled to 12 cylinders at subsidised rates in a year. Beyond that, customers need to make any additional purchases of LPG cylinders at the market price. Under PAHAL (Direct Benefit Transfer of LPG) scheme, consumers get LPG cylinders at a subsidised rate. The subsidy depends on several factors like foreign exchange rates and crude oil prices.
The 19kg commercial LPG also rose from Rs 1,869.5 to Rs 2,221.5, which may push up the cost of eating out.