Cooking gas prices have been hiked to ₹899.50 per cylinder and it could get worse

• Oil marketing companies BPCL, HPCL, IOC have raised cooking gas prices by ₹15 a cylinder.
• This comes after the government hiked the prices of natural gas by 62%, the first time in two years.
• Experts in the field believe the situation could get worse to an extent that LPG prices could hike by ₹100.

Oil marketing companies BPCL, HPCL, IOC have raised cooking gas prices by ₹15 a cylinder. The new price for each cylinder of liquefied petroleum gas (LPG) will be ₹899.50 for the 14.2 kilogram (kg) cylinder. The new rate for a 5 kg domestic cylinder stands at ₹502.

In September, oil marketing companies had raised the prices of non-subsidized LPG cylinders by ₹25.

This week cooking gas prices i.e piped natural gas (PNG) have risen by ₹2 to ₹32.67 per standard cubic meter of gas.

This comes after the government hiked the prices of natural gas by 62%, the first time in two years. "Higher gas prices might slightly hurt the competitiveness of compressed natural gas (CNG) business as city gas distribution companies (Gujarat Gas, Indraprastha Gas) might have to hike CNG price by 10-12% to completely pass on the higher cost of domestic gas,” said analysts at JM Financial.

It could get worse because some unnamed sources from the oil market companies like Indian Oil, BPCL and HPCL told Business Standard that the headroom for the hike is as much as ₹100 for a 14.2 kg cylinder.

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