News Analysis India

Tag: LPG rates

  • Commercial LPG price slashed by Rs 91.5/cylinder; ATF rates cut marginally 

    By PTI

    NEW DELHI: The price of commercial LPG used in hotels and restaurants on Thursday was slashed by Rs 91.5 per cylinder on softening international prices, but oil companies have made no changes in rates of domestic cooking gas and rather began imposing limits on refills a user can order in a fortnight.

    The price of a 19-kg commercial LPG cylinder was cut to Rs 1,885 per cylinder in the national capital from Rs 1,976.50, according to a price notification from state-owned fuel retailers. This is in line with softening international prices.

    However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder.

    This because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices they are at breakeven, industry sources said.

    Commercial LPG rates on the other hand have largely been aligned with cost and so they have moved in tandem with rise and fall in international rates.

    And this difference between a market-priced commercial LPG and below-cost household cooking gas had led to diversion of cylinders meant for kitchens into commercial establishments. To check this, the state-owned oil firms have now started imposing limits on a 14.2-kg refill a household can order, they said.

    Bharat Petroleum Corporation Ltd (BPCL) has limited one refill in 15 days from August 26, and other retailers Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) are likely to follow suit.

    Simultaneously, the rates of aviation turbine fuel (ATF) were cut marginally by 0.7 per cent. Jet fuel price was cut by Rs 874.13 per kilolitre, or 0.7 per cent, to Rs 121,041.44 per kl in the national capital.

    Rates differ from state to state depending on the incidence of local taxes.

    NEW DELHI: The price of commercial LPG used in hotels and restaurants on Thursday was slashed by Rs 91.5 per cylinder on softening international prices, but oil companies have made no changes in rates of domestic cooking gas and rather began imposing limits on refills a user can order in a fortnight.

    The price of a 19-kg commercial LPG cylinder was cut to Rs 1,885 per cylinder in the national capital from Rs 1,976.50, according to a price notification from state-owned fuel retailers. This is in line with softening international prices.

    However, rates of LPG used in household kitchens for cooking purposes remained unchanged at Rs 1,053 per 14.2-kg cylinder.

    This because the rates of domestic cooking gas were way lower than cost and now with a drop in international prices they are at breakeven, industry sources said.

    Commercial LPG rates on the other hand have largely been aligned with cost and so they have moved in tandem with rise and fall in international rates.

    And this difference between a market-priced commercial LPG and below-cost household cooking gas had led to diversion of cylinders meant for kitchens into commercial establishments. To check this, the state-owned oil firms have now started imposing limits on a 14.2-kg refill a household can order, they said.

    Bharat Petroleum Corporation Ltd (BPCL) has limited one refill in 15 days from August 26, and other retailers Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL) are likely to follow suit.

    Simultaneously, the rates of aviation turbine fuel (ATF) were cut marginally by 0.7 per cent. Jet fuel price was cut by Rs 874.13 per kilolitre, or 0.7 per cent, to Rs 121,041.44 per kl in the national capital.

    Rates differ from state to state depending on the incidence of local taxes.

  • Uttarakhand: LPG Cylinder Cost Inflate in the Hills

    By Express News Service

    DEHRADUN: LPG gas cylinder in Uttarakhand hills costs more than 35-40 per cent usual due to transportation costs making it difficult for people to use it regularly. 

    A unit of the cylinder costs Rs 935.50 which reaches to Rs 1,200-1,800 in various parts of remote hills of Uttarakhand. 

    The cost of a unit of the LPG cylinder reaches Rs 1,800 till it reaches Jumma village of Dharchula in Pithoragarh district.

    Anandi Devi from the village says, “The cylinders needed to be carried manually which costs Rs 600 extra till the village. Also, Rs 200 more needs to be paid for transportation costs. This makes the cost almost double.”

    In Kotkendri village of Champawat district, the original cost of the LPG cylinder rises to Rs 1,500 from Rs 943.

    Neeraj Singh from the village said, “Due to bad connectivity, unavailability of transportation and tough terrain Rs 600 extra costs adds the price over Rs 1,500. This added burden is not easy to bear for the majority of the families residing in hilly stars of Uttarakhand.”

    According to the biennial report of the Forest Survey of India released in the year 2020, Uttarakhand has a carbon stock of 370912 tonnes while the state still uses 4076 tonnes of firewood annually as fuel for various purposes including cooking. 

    The report also revealed an increase in forest cover in 10 districts of Uttarakhand in the last two years time while three districts have recorded a decrease. Tough terrains coupled with the unavailability of roads, other infrastructure results in various problems including mobile connectivity as well as highly inflated prices of items of daily use. 

    Common salt costs Rs 20 per kilogram at prices over Rs 100 per kilogram in many border villages of Pithoragarh district where this essential item is being sold at Rs 130 per kilogram. 

    In three village panchayats with 13 villages of India-China border in the district- Burfu, Laspa and Raalam face the issue, not around the year but often.