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Cooking gas prices hiked by ₹100 this month – check what happens to subsidies

Cooking gas prices hiked by ₹100 this month – check what happens to subsidies
India4 min read
  • Government-owned oil companies have increased cooking gas prices by ₹100 in December 2020.
  • This is the biggest monthly hike in cooking gas prices yet.
  • As a result of the latest price hike, a 14.2 kg LPG gas cylinder in Delhi will now cost ₹694.
  • Amongst the major cities and state capitals, cooking gas prices are the highest in Patna at ₹792.
  • There is no official information on what happens to cooking gas subsidy benefits.
  • Check out the latest news and updates on Business Insider.
Government-owned oil companies have increased cooking gas prices by ₹100 in December 2020. The cooking gas prices have been hiked by ₹50 two times in the last 15 days, which is the biggest price hike in a single month yet.

As a result of the latest price hike, consumers in Delhi will now have to pay ₹694 per cylinder (14.2 kg). In Hyderabad, a 14.2 kg gas cylinder now costs ₹746.5.

New LPG gas cylinder prices in major cities of India

City

December 2020

November 2020

New Delhi

₹694

₹594

Mumbai

₹694

₹594

Kolkata

₹720.50

₹620.50

Chennai

₹710

₹610

Bengaluru

₹697

₹597

Hyderabad

₹746.50

₹646.50

Gurgaon

₹703

₹603

Patna

₹792

₹692


Note: Prices as on December 17, 2020

In the first week of December or late November, cooking gas prices in Delhi and Hyderabad were ₹594 and ₹646.5, respectively. Cooking gas prices remain the highest in Patna, at ₹792.

It is worth noting that these price hikes apply to both subsidized as well as non-subsidized gas cylinders. If you are eligible for the subsidy, you will have to pay the increased prices on booking a cylinder now. We have verified the same on the Indian Oil website.

What will happen to my LPG gas subsidy?

Consumers who are eligible and have opted for gas subsidy might see a proportionate increase in their subsidies. However, exact details and an official confirmation in this regard is not available yet.

Under the subsidy scheme, households in India can buy a maximum of 12 LPG cylinders per year. These consumers have to buy gas cylinders at the full price first, and the subsidy amount is then credited to the consumer’s bank account by the government.

In September this year, the government eliminated cooking gas subsidies as a fall in oil prices and increase in cooking gas prices brought parity in the market and subsidized prices.

With the market prices increasing again, it remains to be seen if the government increases subsidy benefits as well.

Crude oil prices have increased steeply since October

Since October, crude oil prices have seen a steep increase, forcing the oil companies to hike prices of petrol and diesel, according to an ET report.

In the last one month, petrol prices have been hiked 14 times, increasing by 2.8%. The last time petrol prices were this high was in 2018 when prices hit ₹91.39 per liter in Mumbai and ₹84.06 in Delhi. Current petrol prices in Mumbai and Delhi are ₹90.34 and ₹83.71, respectively.

SEE ALSO:

Indian government will no longer pay out direct benefit transfer for cooking gas — subsidy eliminated as oil prices fall

BPCL cooking gas customers will continue getting subsidy post privatisation but government will not reimburse the cost

Petrol is less than a rupee away from being more expensive than it has ever been for Indian consumers

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