Also Read: Local fuel prices soar; People will have to tighten their belts
With the new price hike, the price of a 14.5 kg cylinder in Delhi will be Rs 899.50. In Mumbai, the price of a domestic cooking gas cylinder is Rs 899.50. Kolkata has the highest price among metro cities in India. 926. In Chennai, 14.5 kg of cooking gas will cost Rs 915.50. The new rates will apply to customers of Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
The price of a gas cylinder is calculated based on the import parity price (APP). As the country imports fuel, LPG in the international market is declining. IPP is based on price. Determined. International oil prices have risen $ 13 in two weeks. For the first time in the history of the state, the price of petrol has crossed Rs 105 today. According to reports, diesel prices will cross Rs 100 soon.
Gas prices had risen earlier this month. At that time the price was increased to Rs 25.50 per cylinder for domestic use. The price of cylinders used for commercial purposes was also increased. The price has been hiked by Rs 73.50 per cylinder. The fact that current purchases are not subsidized is doubly striking. In short, the cost of living will rise. Since June last year, the central government has been supplying LPG. The scheme of depositing the subsidy directly in the account of the customers was discontinued. In the current scenario, the demand for reinstatement of subsidy for cylinders and for the government to take over the pricing power is getting stronger.
The last GST to include fuel price in GST. The council meeting had discussed. But this did not happen due to opposition from most of the states. The states objected to preventing revenue leakage. Enterprises are struggling to survive in markets that come out of Kovid controls. Meanwhile, the increase in the price of a commercial cylinder will adversely affect the operations of companies. Increasing the price of products is not good for consumers and markets. This will lead to a rise in inflation.