Big blow to middle class; non-subsidised LPG cylinder price hiked by Rs 86

In what seems to be a blow to the middle class households, the price of non-subsidised cooking gas (LPG) was hiked to Rs. 86 per cylinder on Wednesday, after crude oil fell for the third straight session.

In what seems to be a blow to the middle class households, the price of non-subsidised cooking gas (LPG) was hiked to Rs. 86 per cylinder on Wednesday, after crude oil fell for the third straight session.

Non-subsidised LPG, bought by those who have either given up their subsidies or exhausted the quota of 12 bottles of 14.2-kg in a year at below market price, will now cost Rs. 737.50.

It was priced at Rs. 651.50 per 14.2-kg cylinder till yesterday, according to state-owned oil companies.

The hike, steepest in the history, comes on back of Rs. 66.5 per cylinder increase effected from February 1.

Rates have been on the upswing since October, 2016. A non-subsidised LPG cylinder was priced at Rs. 466.50 in Delhi in September and has risen by Rs. 271 per bottle or 58 per cent in six instalments.

Oil firms also raised price of subsidised cooking gas by a marginal 13 paisa to Rs. 434.93 per 14.2-kg cylinder. This follows a 9 paise increase effected from February 1.

Prior to these two marginal price hikes, subsidised cooking gas rates had gone up eight times of nearly Rs. 2 per cylinder each.

Aviation turbine fuel (ATF) price was also raised by a marginal Rs. 214 per kilolitre to Rs. 54,293.38 per kl. The increase comes on back of a 3 per cent hike on February 1.

Oil firms revise rates of ATF and cooking gas on 1st of every month based on oil price and foreign exchange rate in the preceding month.

An official statement said the increase in non-subsidised LPG rates were in "line with the rise in global LPG product prices."

"However, there will be no impact on the LPG consumers receiving subsidised refills," it said.

Giving an illustration, it said the consumer will pay Rs. 737 for a new refill in Delhi and will receive subsidy amount of Rs. 303 in his/her account and the net price for the consumer will be Rs. 434, which remains unchanged.

"Thus, there will be no net impact of the increase in price of non-subsidised cylinder on the LPG consumers receiving subsidised refills," it added.

(With inputs from PTI and Reuters)