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LPG rates hiked after 3 months in UNLOCK 1.0

The price of liquefied petroleum gas (LPG) has now increased after 3 months of price cut. Indian Oil in a statement said, “For the month of June, 2020, there has been an increase in international prices of LPG. Due to increase in the prices in international market, the RSP (retail selling price) of LPG in Delhi market will be increased by ₹11.50 per cylinder.”

The prices of cylinders have hiked up to 37 rupees in metro cities. There is a hike of Rs. 11.50 per cylinder in Delhi; Rs 37 in Chennai; Rs 31.50 in Kolkata; Rs 11.50 in Mumbai. These rates will be applied from today, i.e., June 1, 2020.

The non-subsidized cylinder will now cost Rs. 593 in Delhi, 616 in Kolkata, 590 and 606 in Mumbai and Chennai respectively.

LPG prices had been falling for the last few months due to a sharp drop in international prices and in India; prices were cut sharply for three consecutive months. In comparison, the recent increase is marginal. In February this year, a 14.2 kg non-subsidized LPG cylinder was priced at ₹858.50 in Delhi and as compared with today’s price, it is cheaper by ₹265.50. In recent months, LPG cylinder rate had gone up to ₹942.50 (November 2019 in Delhi).

 

It may be noted that the price hike will not impact beneficiaries covered by the Pradhan Mantri Garib Kalyan Yojana, who will get free cylinder till June 30. The price hike coincides with the reopening of the economy under ‘Unlock 1.0’ from today. While the sale of petrol and diesel was hit badly till the fourth phase of lockdown which ended yesterday, LPG cylinders remained in demand. In fact, in the first fortnight of May, cooking gas LPG showed a 24% rise in consumption to 1.2 million tonnes as compared with 9,65,000 tonnes in the first half of May 2019.

 

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