The central government has not given approval to the petroleum marketing companies to fix the retail price of LPG cylinder according to the cost. Apart from this, no subsidy (LPG Subsidy) has been given by the government so far to bridge this gap.
New Delhi. From vegetables to petrol and diesel, the common consumer is constantly being hit by the inflation. Now before Diwali, an increase in the price of LPG cylinder can be announced again. It is being told that there will be an increase in the prices of domestic LPG cylinders (LPG Price hike) in the first week of November. Let us inform that on 6 October 2021, the prices of 14 kg domestic LPG cylinders were increased by Rs 15. Not only this, since July 2021 till now, the price of LPG cylinder has been increased by Rs 90.
Why will the price of LPG cylinder be increased?
It is being told that the loss due to the sale of LPG cylinders at a price below the cost has reached Rs 100 per cylinder. Because of this, an increase in its prices can be announced. The increase in the price of LPG cylinder will be decided on the approval of the government.
The central government has not given approval to the petroleum marketing companies to fix the retail price according to the cost. Apart from this, no subsidy (LPG Subsidy) has been given by the government so far to bridge this gap. In such a situation, the loss on the sale of LPG has reached Rs 100 per cylinder amid the increase in international prices.
At what cost LPG cylinder is available?
The price of Brent crude oil has reached $ 85.42 per barrel. At the same time, the rate of LPG in Saudi Arabia has increased by 60 percent to $ 800 per tonne this month. LPG is currently a regulated commodity. In such a situation, technically the government can regulate its retail price. However, in this situation the central government will have to meet the loss of sale at a price less than the cost.
Currently, the price of LPG cylinder in Delhi and Mumbai is Rs 899.50. At the same time, in Kolkata it is being sold at the rate of Rs 926. Apart from this, petrol has crossed the level of Rs 100 per liter in all the major cities of the country. Not only this, petrol has also crossed the level of Rs 100 per liter in more than 18 states and union territories of the country.
