For the third time in a month, oil marketing companies on Wednesday increased by Rs 220 per cylinder the price of non-subsidised cooking gas (LPG) cylinder, which a customer buys after the nine subsidised refills.
After the steepest hike effected from the first day of the New Year, a 14.2-kg non-subsidised cooking gas cylinder now costs Rs 1,267 in Bangalore and Rs 1,241 in Delhi, according to a revised price chart the Indian Oil Corporation posted on its website.
Other public sector oil marketing companies (OMCs) effected a similar price revision.
The Indian Oil Corporation also announced a similar sharp increase in the auto LPG price across the country. In Bangalore, the increase is Rs 11.10 per kg and in Delhi, it is Rs 10.71. As a result, the revised price in Bangalore is Rs 65.53 per kg — up from existing Rs 54.40 — and in Delhi, it is Rs 60.39. The auto LPG hike in Bangalore comes barely 12 days after the minimum auto fare in the City was hiked from
Rs 20 to Rs 25 and a revised per km fare of Rs 13, up from Rs 11 per km.
In Delhi, too, auto drivers have been demanding fare revision in the wake of a recent hike in the gas price. The substantial hike in the prices of auto LPG has come as a jolt for both autorickshaw drivers as well as the commuters. The drivers are planning to hold a demonstration next week to protest the hike.
The OMCs also effected a 2.7 per cent hike in the price of jet fuel, which is likely to further increase airfare.
The OMCs justified the upward price revision citing sharp increases in international LPG rates due to increased winter heating demand in the western countries. However, an oil company official said when supplies improve and prices fall, the benefit would be passed on to the consumers.
Prices of domestic LPG typically rise from November to March due to a spike in demand due to harsh winter in Europe and the US. The Indian prices go up because they are linked to international rates. Prior to this, the non-subsidised LPG costs went up twice in December. State-owned oil companies revise rates of non-subsidised LPG on the 1st of every month, based on the average imported cost and rupee-US dollar rate during the previous month.
However, there is no change in the price of subsidised LPG. Officials said state-owned oil firms currently lose Rs 762.70 per cylinder on the sale of subsidised LPG after the gas prices rose globally.