Biggest hike in 6 years in LPG prices

For the sixth time in the past few months, LPG cylinder prices touch the sky. Prices have increased by margins ranging from 144 rupees up to 149 rupees.

Crux of the Matter

Price hike
This is the highest price hike in the prices of LPG cylinder. The last price hike was done by an increase of 19 rupees on 1st January.
The state-run oil marketing companies (OMCs) on Wednesday, declared the revised price list of liquefied petroleum gas. According to that new prices of 14.2 kg cylinder for non-subsidised users is rupees 858.5 from 714 in Delhi, 829.5 from 684.50 in Mumbai, 881 from 734 in Chennai and 896 from 720 in Kolkata.

Who will be affected?
The subsidised users are unlikely to be affected by price hike as to insulate the domestic users the government has almost doubled the amount of subsidy i.e. from 153.4 rupees to 291.48 rupees. Further beneficiaries of the subsidy for the Pradhan Mantri Ujjwala Yojana (PMUY), will get the cylinder at a very subsidized rate of rupees 546.

Those who are not subsidised users will have to face this price hike. They will get no protection from the government and further, they will have to pay GST on the market price of the cylinder.

Opposition against hike
It has been observed that there is a pattern in energy sector price hikes and elections. The OMCs have raised prices of transportation fuel and LPG only after elections. For instance, price hike just after 17th Lok sabha, price hike after Karnataka polls and the current one after Delhi elections. But state-owned companies have constantly denied that there is any relation of price hike with elections.

Political parties such as Congress, TMC and CPI have demanded rollback of the price hike. Congress said “We demand this, as the price of the international crude oil has fallen, why should there be such surreptitious and uncalled for increase in the price of the gas cylinder. This increase in the price should immediately be rolled back.” TMC and CPI slammed this move by saying that BJP did it as they lost in the Delhi election. BJP refuted these allegations and responded that the price hike was not related to Assembly elections results.


Ministry of Petroleum and Natural Gas – The Ministry of Petroleum and Natural Gas (MOP&NG) is a ministry of the Government of India. It is responsible for the exploration, production, refining, distribution, marketing, import, export, and conservation of petroleum, natural gas, petroleum products, and liquefied natural gas in India. More Info