LPG price likely to hike next week

If the government allows the hike then this will be the fifth increase in cooking gas rates

The price of LPG might be hiked by next week after under-recovery on the fuel widened over Rs 100 per cylinder.

If the government allows the hike then this will be the fifth increase in cooking gas rates. Last time, the rates were hiked by Rs 15 per cylinder on 6 October, taking the total increase in rates to Rs 90 per 14.2-kg cylinder.

According to sources, the state-owned oil marketing companies have not been allowed to align with the retail selling price of the cost, and even no government subsidy has  been approved so far to bridge the gap.

Currently, the losses on LPG sales have mounted to over Rs 100 per cylinder after the international energy prices soared at a record high.

The Saudi LPG rates have jumped by 60 per cent to USD 800 per tonne this month and the international benchmark Brent crude oil is currently trading at USD 85.42 per barrel.

Central government last year eliminated the subsidies on LPG by bringing retail prices at par with the cost through periodic hikes.

If the government plans not to bear subsidy then the retail prices have to increase.

Presently, the price of cooking gas is Rs 899.50 per cylinder in the capital and in  Mumbai it is also the same while it is Rs 926 in Kolkata. At this rate, domestic households are entitled to 12 cylinders of 14.2-kg each at subsidised rates.

India Scanner News Network

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