Government increases domestic LPG prices by £50 per bottle

The government on Wednesday in Delhi increased the price of 14.2 kg domestic liquefied petroleum gas (LPG) cylinders by ₹50 to ₹1,103 per cylinder.

Also, the price of a commercial 19kg LPG bottle has been increased by ₹350.50, bringing the total cost to ₹2,119.50 per bottle in the state capital.

Previously, the Retail Selling Price (RSP) of a 14.2kg domestic LPG cylinder in Delhi was £1,053. In the case of other states, the differences in the RSP for LPG are mainly due to the distance of the connected ports and bottling plants and the resulting transport costs for LPG. Domestic LPG prices have not changed since July 2022.

For domestic LPG, the government continues to modulate the effective price for consumers. Public Sector Oil Marketing Companies (OMCs) have suffered huge losses selling domestic LPG. To compensate for these losses, the government recently approved a one-off compensation of ₹22,000 crore for OMCs.

In May 2022, the government launched a targeted subsidy of ₹200 per 14.2kg cylinder for beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) for up to 12 refills per year for FY23.

As of December 2022, there are 31.37 million domestic LPG consumers nationwide.

India imports more than 60 percent of its domestic LPG consumption. Average Saudi CP prices, on which domestic LPG prices are based, increased from $454 per tonne MT to $693 per tonne over the period 2019-20 to 2021-22. In 2022-23, the average Saudi CP has further increased to $710 per ton by February 2023.