NEW DELHI: State-run fuel retailers raised prices of 19-kg commercial LPG (liquefied petroleum gas) cylinders by Rs 25 each on Sunday, marking the first increase of 2023, but left the price of 14.2-kg domestic refills unchanged in spite of the recent hardening in benchmark rates. The commercial refills, used by hotels, neighbourhood eateries and caterers, will now cost Rs 1,769 in Delhi, Rs 1,721 in Mumbai, Rs 1,870 in Kolkata and Rs 1,971 in Chennai. Commercial cylinders saw six price reductions amounting to Rs 610 and four increases totalling Rs 153.50 in 2022 in tune with variations in benchmark rates.
The prices of domestic refills remained unchanged at Rs 1,053 (in Delhi) due to government subsidy. In October, the finance ministry cleared a one-time grant of Rs 22,000 crore – against the oil ministry’s demand of Rs 28,000 crore – to compensate losses state-run fuel retailers suffered by not raising the prices adequately to match the elevated benchmark rates.
Between June 2020 and June 2022, international prices of LPG rose by 300% but domestic refill prices were raised by 72% to insulate consumers from price fluctuations. The government had budgeted Rs 4,000 crore for subsidising fuel through direct benefit transfer to the identified poor households.
Oil minister Hardeep Puri last month said his ministry will seek more funds to compensate the state-run fuel retailers losses because of a freeze on petrol and diesel prices in spite of surging global rates.