LPG prices increased: In tune with a rebound in international rates, the price of liquified petroleum gas (LPG) cylinders was increased for the second consecutive month today. Indian Oil’s non-subsidized 14.2 kg cylinder, Indane, will cost ₹594 in both Delhi and Mumbai from today. While the rate has been hiked by just Re 1 in Delhi, the price hike in Mumbai is ₹3.5 a cylinder.

Last month, the retail selling price of LPG in Delhi was hiked by ₹11.50 per cylinder. The current spate of rate hike comes after three consecutive months of rate cuts which made LPG cylinders cheaper by ₹277. In February, LPG cylinder rates had gone up to ₹858.50 (Delhi) but in March, as coronavirus fears started to impact global fuel demand, the rate went down to ₹805.50. In May, LPG price was reduced from ₹744 to ₹581.50 per cylinder as the energy market went into a bear mode.

This is the second consecutive monthly increase, in tune with the rebound in international rates. Last month, the retail selling price of LPG in Delhi was hiked by Rs 11.50.

Prices as on July 1 in metro cities Delhi, Mumbai, Bangalore and Chennai have been hiked in the range of Rs 1 to Rs 4.50.

City Prices as of July 1, 2020 Previous prices
Delhi Rs 594 Rs 593
Mumbai Rs 594 Rs 590.50
Kolkata Rs 620.50 Rs 616
Chennai Rs 610.50 Rs 606.50

Prices for the 19 kg LPG cylinder were also revised upwards for Mumbai, Kolkata and Chennai.

In Delhi, however, the 19 kg LPG cylinder price was slashed by Rs 4.

City Prices as of July 1, 2020 Previous prices
Delhi Rs 1135.50 Rs 1139.50
Mumbai Rs 1090.50 Rs 1087.50
Kolkata Rs 1197.50 Rs 1193.50
Chennai Rs 1254 Rs 1255

While petrol and diesel prices are revised on a daily basis, LPG rates are changed at the beginning of every month.

LPG cylinders are sold at the market price in India but the government transfers the subsidy directly into the account of eligible consumers. The subsidy is the difference between market and subsidized price of cooking gas. After exhausting their quota of 12 cylinders of 14.2 kg each at subsidized prices, domestic household consumers have to buy non-subsidized LPG cylinders.

State retailers’ LPG sales rose 6% to 960,000 tonnes in the first half of June compared with a year earlier, although consumption was down 20% from May the first half.